THREE EX-BARCLAYS BANKERS CONVICTED OVER LIBOR SCANDAL

BUSINESS WITH PERSONALITY 

BORING, BORING FOOTBALL 

HOW TO MAKE THE EUROS 

MORE OF A GOALFEST P28 

LADY JUDGE 

ON STARTUPS, 

PENSIONS AND 

ROLE MODELS P9 

TUESDAY 5 JULY 2016 ISSUE 2,661 CITYAM.COM FREE 

(Left to right) 

Alex Pabon, 

Jay Merchant 

and Jonathan 

Mathew 

THREE EX-BARCLAYS BANKERS 

HAYLEY KIRTON 

@HayleyLEK 

THREE more former bankers have been 

slapped with guilty verdicts for their 

roles in Libor manipulation, taking the 

total number of UK convictions to five. 

Former traders Jay Merchant, 45, and 

Alex Pabon, 38, and ex-Libor submitter 

Jonathan Mathew, 35, all stood trial 

charged with conspiracy to defraud. 

The prosecution said that the trio of exbankers 

worked together to manipulate 

US dollar-linked Libor between June 

2005 and September 2007. 

Merchant was found guilty by a 

unanimous verdict, while Mathew was 

found guilty by an 11 to one majority 

and Pabon by a 10 to two majority. 

“The key issue in this case was 

dishonesty,” said director of the Serious 

Fraud Office (SFO) David Green. “By their 

verdicts the jury demonstrated it was 

sure that the conduct of three of the 

defendants...was dishonest.” 

The jury delivered its verdicts last 

week. Court restrictions preventing the 

reporting of the decision were lifted 

yesterday after the jury was discharged, 

having been unable to reach a majority 

verdict on the other two defendants, 

Stylianos Contogoulas, 44, and Ryan 

Reich, 34. The fraud squad has a 

fortnight from yesterday to decide 

whether it would like to pursue a retrial 

for Contogoulas and Reich. 

COMMENT: PAGE 2 

FULL COVERAGE: PAGE 12 

CONVICTED OVER LIBOR SCANDAL 

These three most recent verdicts bring 

the total number of convictions secured 

as part of the SFO’s Libor investigation to 

five. A second Libor submitter, 61-yearold 

Peter Johnson, had pleaded guilty 

before the most recent trial began. 

Meanwhile, last August, former UBS 

and Citigroup trader Tom Hayes was 

found guilty on eight counts of 

conspiracy to defraud and sentenced to 

14 years in prison, although this was 

later reduced to 11 years. 

However, in January, six brokers who 

had been accused of conspiring with 

Hayes to rig yen-linked Libor were 

acquitted. 

“If the SFO was smarting from the 

broker acquittals in the second Libor 

trial, they will feel vindicated and 

emboldened by these verdicts – as well 

as a little relieved as the jury deliberated 

for some time,” said Sarah Wallace, head 

of regulatory & criminal investigations 

group London for Irwin Mitchell. 

The jury was initially sent out to 

consider its verdict on 20 June. 

PROPERTY 

Real estate fund is suspended as property share prices crumble 

WILLIAM TURVILL AND HELEN CAHILL 

@wturvill @HelCahill 

STANDARD Life Investments yesterday 

suspended trading in its UK 

property fund following a surge in 

outflows triggered by the UK’s 

vote to quit the European Union. 

Earlier in the day data showed 

that construction activity suffered 

its worst contraction in seven years 

last month. The figures sparked a sell 

off in commercial property and 

BRITISH LAND 

7.1% 

housebuilding stocks. British Land and Land 

Securities were down 7.1 per cent and 5.7 per 

cent respectively at the London market close, 

while housebuilders Persimmon, 

Barratt Developments, and 

Taylor Wimpey, fell 6.8 per 

cent, 6.4 per cent, and 6.3 per 

cent. Liberum analysts said 

risks surrounding 

commercial real estate have 

increased as uncertainty over 

future demand for office space in 

the City grows. 

PERSIMMON 

6.8% 

Standard Life blamed the suspension of its 

£2.9bn fund, which came into force at 

midday, on “exceptional market 

circumstances”and said the 

suspension would be lifted “as 

soon as possible”. 

Meanwhile, it was 

revealed that investors took 

hundreds of millions of 

pounds out of the UK’s 

property sector before the EU 

referendum, according to data 

released by the Investment Association. 

BARRATT 

DEVELOPMENTS 

6.4% 

In May there was a £360m net retail 

outflow from property funds, as UK investors 

looked to reduce their risks ahead of the 

Brexit vote, turning to fixed income 

funds instead. 

“Investors appear to have shunned 

UK growth and property funds in the 

run up to the referendum and indeed 

beyond,” said Laith Khalaf, senior 

analyst at Hargreaves Lansdown. 

“Property funds in particular could 

be in for a bumpy ride, given the price 

adjustments we have already seen.” 

FTSE 100 ▼ 6,522.26 -55.57 FTSE 250 ▼ 16,116.70 -348.79 DOW 17,949.37 CLOSED NASDAQ 4,862.57 CLOSED £/$ 1.328 UNC £/€ ▲ 1.909 +0.716 €/$ ▲ 1.115 +0.002

02 NEWS TUESDAY 5 JULY 2016 

CITYAM.COM 

FLOWER POWER A host of A-listers set to attend the Hampton 

Court Palace Flower Show, the UK’s biggest gardening pageant 

THE CITY VIEW 

The Libor trial could be 

a turning point for SFO 

THE UK’s fraud squad has had a rough ride in recent years. 

Wave after wave of criticism has battered its modest West 

End headquarters, especially since the botched investigation 

into property tycoon Vincent Tchenguiz. Just over four years 

have passed since the Serious Fraud Office (SFO) admitted that 

there were “no longer reasonable grounds” for pursuing 

Tchenguiz. One month after this embarrassing climbdown, in the 

summer of 2012, attention turned to an entirely unrelated and 

growing scandal – the widespread rigging of benchmarks by some 

of the world’s biggest banks. Until last week, the SFO’s response to 

rate-rigging was threatening to add another line to its list of 

disappointments. Only one person – Tom Hayes – had been found 

guilty by a court, from the 13 individuals initially targeted. Six 

others were acquitted in January, while a probe into forex 

benchmark manipulation was dropped in March. Vultures were 

circling. The latest Libor trial 

may be a turning point, 

however. Five of the 

aforementioned 13 accused exbankers 

have now pleaded 

guilty or been found guilty – a 

high enough ratio to suggest 

that the operation was 

worthwhile. It may be crude to judge the SFO purely on its hit-rate, 

and there are broader questions about how the authorities 

respond to cases of widespread white-collar crime (is it not possible 

to hold more senior executives to account, for example?) 

Nonetheless, Britain’s fraud office appears to have come a long 

way since a High Court judge blasted its “sheer incompetence” 

over the Tchenguiz case. One concern for the SFO could be the rise 

of Theresa May, whose campaign to become the Conservative Party 

leader – and next Prime Minister – already enjoys the support of 

more than 100 Tory MPs. She is believed to harbour a plan to 

combine the fraud squad with the National Crime Agency, and 

while the rumour is ridiculed by SFO boss David Green, few in 

Westminster believe that May looks favourably upon his 

organisation. Political chaos surrounding the UK’s Brexit vote 

could delay any reform of the SFO, which suddenly looks like a 

relatively minor and tangential issue. But if wolves do appear, the 

fraud office’s improved record means that it will not be the easy 

target it once was. 

Follow us on Twitter @cityam 

Political chaos 

surrounding Brexit 

could delay any 

reform of the SFO 

THE DUCHESS of Cornwall visited a special preview of 

the annual RHS Hampton Court Palace Flower Show 

yesterday. Flora aficionados are set to flock to the 

garden extravaganza that opens to the public today 

Investment banking fees 

plummet 23pc this year 

WILLIAM TURVILL 

@wturvill 

INVESTMENT banking (IB) fees 

plunged by more than a quarter in the 

UK and Ireland in the first half of 

2016, new figures show. 

Global fees for the six-month period 

were $37.1bn (£27.9bn), down 23 per 

cent on the same period in 2015, according 

to Thomson Reuters. This was 

the lowest first-half figure since 2012. 

And the decline was even more 

prominent in the UK and Ireland, 

with IB fees totalling $2.5bn, down 28 

per cent. Europe as a whole was down 

26 per cent. 

JP Morgan took the largest slice – 

seven per cent – of revenue during the 

period, with $2.6bn in fees. But this 

was down 23 per cent year-on-year. 

Goldman Sachs’ IB fees revenue, 

meanwhile, was down 30 per cent to 

$2.4bn; Bank of America Merrill 

Lynch’s was down 24 per cent to 

$2.1bn; and Morgan Stanley’s IB fees 

dropped 27 per cent to $2.1bn. 

Ian Gordon, Investec’s head of banks 

research, said the figures were “directionally 

unsurprising” and was not 

hopeful of a recovery in the second 

half of the year, forecasting further 

job losses. 

“[It] provides a foretaste for an extremely 

challenging outlook for IB 

revenues going into the second half of 

this year and beyond – which will be 

met by further rounds of rationalisation 

and cost reduction,” he told City 

A.M. “If you work on the assumption, 

as I would, that this will have a reasonably 

extended duration – we’re not 

talking about one or two quarters of 

weak numbers – you would expect 

banks to react accordingly in terms of 

trying to preserve some elements of 

profitability in these activities.” 

Simon Hunt, PwC’s UK banking and 

capital markets lead, told City A.M. the 

global figures reflected the “fragility” 

of the economy in the first half of the 

year, pointing to China’s troubles and 

oil price volatility. 

On the UK figures, he pointed to caution 

around the 23 June EU referendum. 

He was slightly more positive 

than Gordon on the outlook for the 

second half of year, saying it was 

“quite difficult” to predict. 

“I think people are still digesting the 

results of the referendum, and you’ve 

obviously got the presidential elections 

coming up, you’ve got some 

speculation that interest rates will 

have to be cut,” he said. “So you’ve got 

some uncertainty built into the second 

half of the year. That said, the decline 

in deals in the first half of the 

year means that there is a relatively 

good pipeline of deals coming up in 

the second half of the year and people 

will still need to do transactions.” 

FINANCIAL TIMES THE TIMES THE DAILY TELEGRAPH THE WALL STREET JOURNAL 

JUNCKER TO GIVE WAY ON 

EU-CANADA TRADE PLAN 

Jean-Claude Juncker, the European 

Commission president, is preparing to 

ditch contentious plans to fast-track 

approval of a trade deal with Canada, in 

an eleventh-hour political retreat that 

followed staunch criticism from some 

European capitals. Juncker has tried to 

speed up the formal adoption of the 

EU-Canada deal by having it approved 

by trade ministers and MEPs, without 

the need for 38 parliaments to sign it off. 

BOEING BOSS SEEKS TO 

CLOSE GAP ON AIRBUS 

Dennis Muilenburg has been in the 

Boeing hot seat for barely a year and 

already the group’s new CEO is facing 

WHAT THE 

OTHER 

PAPERS SAY 

THIS 

MORNING 

difficult challenges. “It is a competitive 

marketplace. We know our future’s not 

guaranteed, so every day we have to 

relentlessly pursue additional actions to 

drive our competitiveness,” he said. 

REVEALED: BLAIR’S LETTERS 

TO BUSH BEFORE IRAQ WAR 

Twenty-nine letters from former British 

Prime Minister Tony Blair to George W 

Bush in the run up to the invasion of Iraq 

will be among hundreds of declassified 

documents published this week 

alongside the Chilcot report. 

Sir John Chilcot will release the 

substantial part of the letters from Blair 

to Bush between 2002 and 2007 

alongside his 13-volume report, which 

runs to 2.6m words, more than four 

times as long as War and Peace. 

Current Prime Minister David Cameron 

will receive a copy this morning and 

families of some of the 179 British 

service personnel killed in Iraq will be 

able to read it. 

BELGIUM SLAMMED FOR 

BOWING TO KREMLIN 

The former owners of the oil giant Yukos 

have accused the Belgian government 

of caving in to “bullying” by the Kremlin 

after it attempted to block court moves 

to seize Russian state assets. The 

intervention has sparked controversy 

over state involvement in the courts and 

the influence of the Putin 

administration. 

WAITROSE STRIKES DEAL 

WITH BRITISH CORNER SHOP 

Waitrose has unveiled plans to sell more 

products overseas after striking a deal 

with online retailer British Corner Shop. 

Waitrose will offer more than 2,000 ownlabel 

products through the retailer. 

UBER RIVAL GAINS GROUND 

IN SOUTHEAST ASIA 

Uber rival Grab is winning ride-hailing 

turf in Southeast Asia—home to 600m 

people, almost double the population 

of the US. The startup serves more cities 

in the region than Uber and, according 

to mobile-app analytics firm App Annie, 

is beating the world’s most valuable 

startup in the race for users. 

EU TO SPANISH CLUBS: PAY 

BACK ILLEGAL TAX BREAKS 

Real Madrid, FC Barcelona and five 

other soccer clubs will have to return 

tens of millions of euros to Spain’s 

federal and regional governments after 

benefiting from illegal tax breaks, the 

EU’s antitrust regulator has said.

CITYAM.COM 

TUESDAY 5 JULY 2016 

NEWS 

03 

Business groups 

tell PM: Brexit 

era needs clarity 

HAYLEY KIRTON 

@HayleyLEK 

BUSINESSES are calling on government 

to urgently address issues arising 

from post-referendum uncertainty in 

an open letter today. 

The letter, which is signed by the 

British Chambers of Commerce, the 

Confederation of Business Industry, 

the Federation of Small Businesses, the 

Institute of Directors and EEF, the 

manufacturers’ group, specifically 

asks government to clarify points surrounding 

the status of EU nationals 

living and working in the UK and how 

the vote has affected the progress of 

long-term infrastructure projects. 

“Addressing these key issues would 

be a shot in the arm for business confidence, 

and send the right signals 

across the world,” stated the letter. 

“This may be a time for calm reflection, 

but it is not a time for inaction.” 

In particular, the letter raised concerns 

that the delay on the London’s 

airport expansion plans could spark 

similar hold-ups with other longawaited 

infrastructure projects. 

A Number 10 spokesperson said: “It is 

very important the voice of business is 

heard over the coming months. The 

PM chaired a meeting of his Business 

Advisory Group last week to engage immediately 

following the referendum 

result and he has established new 

structures for Whitehall to coordinate 

business input over the period ahead.” 

CHRIS CRASHES BBC’s Top Gear host 

drives off into sunset amid falling ratings 

BBC CASH cow Top Gear is saying goodbye to host Chris Evans. The petrolhead 

lifestyle show host tweeted yesterday that he “gave it my best shot but sometimes 

that’s not enough” after being with the car series for just one season. 

Stock exchange 

investors wave 

through deal 


@wturvill 

LONDON Stock Exchange 

shareholders have given their 

backing to the £21bn Deutsche 

Boerse merger. Some 99.89 per cent 

of those who voted approved the 

deal yesterday. 

Attention will now turn to 

Frankfurt, where shareholders in 

the German exchange have until 12 

July to approve the deal. 

Analysts covering the deal 

believed obtaining LSE shareholder 

approval was a smaller obstacle 

than winning Deutsche Boerse 

investor and regulatory support. 

“It will be more of a hurdle on 

the Deutsche Boerse shareholder 

side,” Exane BNP Paribas analyst 

Arnaud Giblat told City A.M. “But 

we still think there is a risk of 

political interference. And we still 

see the competition commission as 

the most significant hurdle.” 

IN THE HEAT OF ACTION, THERE ARE THOSE WHO TRUST THEIR LUCKY 

STAR – AND THOSE WHO PREFER THE EMERGENCY, THE WORLD’S FIRST 

WRIST WATCH WITH BUILT-IN PERSONAL LOCATOR BEACON. 

Dominic Chappell: Money I pulled 

out of BHS was a drip in the ocean 

HAYLEY KIRTON 

@HayleyLEK 

DOMINIC Chappell last night 

pushed back on claims that the 

collapse of BHS was caused by 

the money he took out of the 

business. 

The high street retailer 

was placed into 

administration in April, 

just one year after it 

had been sold for £1 to Chappell’s 

Retail Acquisitions. 

In an interview with BBC’s 

Newsnight, Chappell said: 

“Did I take a lot of money out? 

Yes, I did but did the business 

fail because of the money I took 

out? No it didn’t. This was just 

a drip in the ocean 

Dominic Chappell 

took out BHS funds 

compared to the money that was 

needed to turn around BHS.” 

Chappell has come under fire 

recently over the way he ran the 

business. Recently, the former racing 

car driver has faced some tricky 

questions from MPs regarding the 

salary he took from the firm. 

Chappell has also appeared before 

MPs as part of hearings for the two 

parliamentary inquiries the 

retailer’s demise has sparked. 

The UK losing £500m a year as 

visa bills deter Indian tourists 

JOSH MARTIN 

@JoshMartinNZ 

INDIA should be added to the UK’s latest 

£87 two-year visitor visa scheme, a 

report by the Royal Commonwealth 

Society has recommended. 

The report said the share of global 

Indian tourists coming to the UK has 

halved over the last decade. 

The estimated cost of this trend to 

the UK economy is almost £500m per 

year and over 8,000 jobs. 

France has now overtaken the UK as 

India’s most visited European nation, 

attracting 500,000 visitors from the 

subcontinent in 2015. 

At present Indian visitors fork out 

£330 for a two-year visitor visa, or £87 

for six-months. However, a two-year 

visitor visa for Chinese tourists is £87. 

Tim Hewish, the report’s author and 

director of Policy and Research at the 

Royal Commonwealth Society said in 

a statement: “We hope that the government 

will consider the very clear 

benefits of our recommendation, enhancing 

the already close affinity between 

two great Commonwealth 

nations.”


Bon voyage, Farage: 

Ukip leader quits after 

Brexit vote redemption 

JAKE CORDELL 

@JakeCordell 

NIGEL Farage resigned as the leader of 

Ukip yesterday, just 11 days after the 

UK voted to leave the European Union. 

In a speech announcing his decision 

to step down, Farage said: “During the 

referendum I said I wanted my country 

back. Now I want my life back.” 

Amid reports of a falling out with 

Ukip’s top donor Arron Banks and rumours 

of links between Ukip and Conservative 

leadership candidate Andrea 

Leadsom, Farage said he would not be 

actively seeking a role in the UK's negotiating 

team which will lead Britain 

out of the EU, but would be prepared 

to play a role if he was asked. 

Farage said: “I have decided to stand 

aside as leader of Ukip. The victory for 

the Leave side in the referendum 

means that my political ambition has 

been achieved. 

“I came into this struggle from business 

because I wanted us to be a selfgoverning 

nation, not to become a 

career politician. 

“Ukip is in a good position and will 

continue, with my full support to attract 

a significant vote. 

“While we will now leave the European 

Union the terms of our withdrawal 

are unclear. 

“If there is too much backsliding by 

the government and with the Labour 

Party detached from many of its voters 

then Ukip’s best days may be yet to 

come,” Farage added. 

Farage previously attempted to resign 

after he failed to win the South 

Thanet seat in the 2015 general election. 

However, his resignation was rejected 

by the party. 

Ex-shadow business secretary Angela Eagle could stand for Labour leader 

Eagle’s ultimatum to Corbyn: 

Quit or face leadership battle 

JAMES NICKERSON 

@nickersonjw 

AS CONSERVATIVES battle it out for 

the leadership of their party, former 

shadow business secretary Angela 

Eagle has said she could mount a 

challenge on Jeremy Corbyn. 

Eagle said: “It’s a week since 

Jeremy lost that vote of no 

confidence and there are many 

other people up and down the 

country wanting him to consider his 

position. 

“There are many people, MPs, 

party members up and down the 

country asking me to resolve this 

impasse and I will if something isn’t 

done soon. 

“I have the support to run and 

resolve this impasse and I will do so 

if Jeremy doesn’t take action soon.” 

CITYAM.COM 

Osborne asked 

Germany to 

berate Brexit 

MARK SANDS 

@mksands 

GEORGE Osborne requested 

warnings on an “irreversible” Brexit 

vote ahead of the EU referendum, 

German finance minister Wolfgang 

Schauble has said. 

Speaking to German newspaper 

Welt am Sonntag, Schauble said 

his “out is out” comments in 

reference to Single Market access, 

were made following a request from 

the Treasury. 

Schauble said: “George Osborne 

asked me to come to London to 

strengthen the Remain camp and to 

show that a proposed referendum on 

United Kingdom membership of the 

European Union would be an 

irreversible step.” 

A Treasury spokeswoman did not 

respond to a request for comment. 

Schauble also asked for rapid 

action following the vote: “We ask 

you: Decide – and quickly.” 

Johnson comes out in support of 

Leadsom for Conservative leader 

Labour chief defends 

anti-Semitism stance 

HAYLEY KIRTON AND MARK SANDS 

@HayleyLEK & @mksands 

FORMER London mayor Boris 

Johnson yesterday revealed he is 

backing energy minister Andrea 

Leadsom in the Conservative 

leadership race. 

“Leadsom offers the zap, the drive 

and the determination essential for 

the next leader of this country,” read 

a statement from Johnson. 

“She has long championed the 

needs of the most vulnerable in our 

society. 

“She has a better understanding of 

finance than almost anyone else in 

parliament. 

“She has considerable experience 

in government. She is level headed, 

kind, trustworthy, approachable and 

the possessor of a good sense of 

humour,” Johnson added. 

Last week, Johnson ruled himself 

out of the Tory leadership race. 

Leadsom, who formally launched 

her campaign to replace David 

Cameron as Prime Minister yesterday, 

pledged to protect the position of EU 

nationals in the UK. 

Leadsom said that the UK had 

“rediscovered its freedom” in last 

week’s vote, and sought to reassure 

Remain voters that they shouldn’t 

fear Brexit. 

The energy minister also promised 

to back EU nationals currently living 

in the UK, if she is selected by 

Conservative Party members. 

“I commit today to guaranteeing 

the rights of our EU friends who 

have come here to live and work,” 

she said. 

“We must give them certainty. 

There is no way they will be 

bargaining chips in our 

negotiations,” Leadsom added. 

The position of those currently 

living in the UK has become a point 

of contention, with Leadsom’s fellow 

leadership contender and home 

secretary Theresa May last weekend 

suggesting that EU nationals would 

have to wait until after the UK’s 

negotiations with Europe to take 

stock of their position. 

MARK SANDS 

@mksands 

JEREMY Corbyn has defended his 

record on anti-Semitism, denying 

that he had compared Israel to 

terror group Islamic State. 

Speaking in front of parliament’s 

home affairs committee yesterday, 

Corbyn said that he wanted a “large 

and inclusive party”, and rejected 

Labour MP Ruth Smeeth’s claims 

the party is “not a safe space for 

British Jews”. 

Smeeth claimed to have been 

abused at the launch of a party 

report into anti-Semitism. 

At the same event Corbyn later 

appeared to draw parallels between 

Israel and “so-called Islamic states”. 

But speaking yesterday, Corbyn 

stressed he had been alluding to 

countries including Saudi Arabia 

and Pakistan, later admitting: “It 

would have been better, with 

hindsight, if I’d said Islamic 

countries, rather than states.” 

The Labour leader also expressed 

regret for previously describing 

Hamas and Hezbollah as “friends”. 

“I regret using those words,” he 

said. 

And Corbyn also defended his 

press chief Seamus Milne, after MPs 

raised his views on Hamas. 

The Labour leader said: “Mr 

Milne works extremely hard on 

behalf of the Labour party.” 

Feeling Tired? 

Crabb and Fox push Heathrow 

expansion in race to be PM 

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MARK SANDS 

@mksands 

TWO CANDIDATES of the 

Conservative leadership race 

have lent their support to 

expansion of Heathrow airport. 

Work and pensions secretary 

Stephen Crabb yesterday 

promised an immediate green 

light for Heathrow expansion if 

he is selected as the next 

Conservative leader, while 

backbencher Liam Fox also 

committed to a fast decision. 

Crabb yesterday said he would 

expand the airport “as soon as 

possible” after his selection. 

A decision on Heathrow was 

expected this summer, but was 

again delayed last week by 

transport secretary Patrick 

McLoughlin. 

However, Crabb 

said the UK 

cannot afford 

further delays. 

“Expanding 

Britain’s 

airport 

capacity is 

vital for our 

economy and 

will be even 

more vital for the 

new trade links we 

will need to establish with the 

rest of the world,” he said. 

“At this uncertain time, we 

need a government prepared to 

take the strategic decisions 

needed to put long term 

confidence and stability 

into our economy.” 

Fox also lent his 

support to Heathrow 

A decision on Heathrow 

has been delayed twice 

expansion yesterday, 

describing delays to 

the government's verdict 

as “scandalous” and 

promising rapid decisions. 

“I personally favour 

development of a third runway 

at Heathrow which I know will 

not be universally popular. 

“We must have the courage to 

see the bigger picture, and 

implement the decision as soon 

as possible,” he said. 

However, Fox also raised 

questions over HS2. 

“There is no doubt that we need 

better connectivity, reliability 

and capacity but I’m not 

convinced that we need to be 

spending an inordinate amount 

of money and time getting the 

straightest track,” he said


Profits stumble 

but dividends 

safe on FTSE 350 

JAKE CORDELL 

@JakeCordell 

THE UK’s top firms paid out more in 

dividends last year than they made in 

profits for the first time since the recession, 

as they ate into reserves, balances 

sheets and future earnings to 

protect payouts to shareholders. 

Despite profits at the 350 biggest UKlisted 

firms tumbling by more than 

half to £76.2bn in 2015, they still paid 

out 10 per cent more in dividends 

than in 2014. That took the dividend 

cover ratio, a measure of how much 

profit is made for every £1 paid out to 

shareholders across the index, below 

one for the first time since the second 

quarter of 2009. 

It was poor performance from the 

oil, mining and banking sectors 

which dragged the overall score down. 

Excluding those sectors, firms made 

£1.65 in profit for every £1 returned to 

shareholders. Moreover, the mid-cap 

FTSE 250 index also posted a cover 

ratio above one, while for the FTSE 100 

was just 0.89. 

However, the cover ratio fell compared 

to 2014 across the board as 

firms proved reluctant to cut dividends 

even in the face of pressure on 

profits. 

“Firms want to look after their 

shareholders,” said Adam Laird, investment 

director at Hargreaves Lansdown. 

“They will only cut dividends when 

they believe there is a necessity to, as 

its sends out a signal that perhaps the 

experience of the company and the 

situation it’s in isn’t just a short-term 

issue. As soon as they make a cut they 

are seen as a lot less dependable by investors.” 

Helal Miah, an analyst at The Share 

Centre said: “Finance directors will 

usually try to ride out a soft patch for 

profits and hold the dividend steady 

for as long as they prudently can. 

Eventually, it is important to face 

facts.” 

Alex Chesterman wants the correct constitutional process to be followed for Brexit 

Zoopla boss one of the names 

behind Brexit legal bid hoopla 

CAITLÍN MORRISON 

@citycait 

ALEX Chesterman, chief executive of 

online property group Zoopla, has 

been revealed as one of the names 

behind a legal challenge to Brexit. 

London law firm Mishcon de Reya 

announced over the weekend that it 

was putting together a team who 

could mount a legal challenge if the 

government kicked off the Article 50 

process without first securing an act 

of parliament. 

Zoopla said: “The action is being 

supported by...hundreds of 

supporters including businessmen 

like Alex... who want to make sure 

that the correct constitutional 

process is followed.” 

CITYAM.COM 

Close shave: UK 

set to narrowly 

miss recession 

JAKE CORDELL 

@JakeCordell 

THE UK will narrowly avoid a 

recession, but only if it stays in the 

Single Market for another two years 

and the Bank of England exhausts 

its policy toolbox to prop up the 

economy, a leading ratings agency 

has said. 

Standard and Poor’s (S&P) said 

the UK’s vote to leave the EU will 

knock more than half off its 

potential growth in 2017 and 2018, 

and shave 0.8 per cent from the size 

of the Eurozone economy by the 

end of 2018. 

In a note published yesterday, 

S&P said: “We think the UK will 

barely escape a fully-fledged 

recession caused by Brexit, but the 

downside risks are numerous. 

“We assume the Bank of England 

will slash its policy rate to zero by 

the very end of 2016 and restart its 

quantitative easing programme in 

2017, despite a pickup in inflation 

caused by the weaker pound.” 

A number of organisations have 

published significant revisions to 

their growth forecasts for the next 

few years — the consensus estimate 

is for the economy to expand by 

just 0.4 per cent next year. 

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NEWS 

07 

Irish leaders discuss Brexit turmoil 


@nickersonjw 

POLITICAL leaders from the Republic 

of Ireland and Northern Ireland met 

yesterday in Dublin to discuss the 

impact of the EU referendum. 

The ministers met for the first 

time since the referendum, after 

concerns were raised on both sides of 

the border about the ramifications 

of the UK’s historic vote. 

The North South Ministerial 

Council meeting is also the first 

since the May local elections and the 

Irish general election, which was 

held in February. 

In Northern Ireland a number of 

politicians have urged a 

reunification referendum after a 

majority of the electorate backed 

Remain. 

Like Scotland, Northern Ireland 

voted to Remain but was overruled 

by a majority in England and Wales 

that backed Leave. 

Taoiseach Enda Kenny is expected 

to propose an island-wide forum to 

work on the common issues faced by 

the Brexit vote. 

Any planning is somewhat limited 

as no formal talks on the UK’s new 

relationship with Europe can start 

until Article 50 is triggered, an 

action Prime Minister David 

Cameron has ceded to his successor. 

Taoiseach Enda Kenny discussed the Brexit implications for Northern Ireland 

Criminals being 

taught crime 

pays MPs warn 

London Stock 

Exchange gains 

Vietnam fund 

HAYLEY KIRTON 

@HayleyLEK 

GOVERNMENT’S current treatment of 

confiscation orders is sending out the 

wrong message about crime, a report 

published today has warned. 

In particular, the report by the 

Public Accounts Committee (PAC) 

criticised the Home Office for 

routinely missing opportunities to 

push for confiscation orders, which 

allow proceeds from crimes to be 

recouped from somebody who has 

been convicted. 

Just 5,839 orders were imposed in 

2015-16, compared with 6,392 in 

2012-13. 

The MPs also noted that they were 

unimpressed with the amount 

actually being recovered from such 

orders. Numbers from the Home 

Office suggest that just £190m of the 

total £1.9bn confiscation order debt 

has a chance of actually being 

collected. 

“The number of orders imposed 

has fallen and, according to 

unaudited figures provided by the 

Home Office, only a tenth of the 

huge debt owed under such orders is 

realistically collectable,” said Meg 

Hillier, chair of the PAC. “This sends 

an appalling message to criminals 

who stand to benefit from crime – 

and, equally importantly, to their 

victims and taxpayers. 

“Such relatively meagre returns do 

nothing to alleviate public concerns 

about crime, nor to encourage the 

perception that justice is being 

done.” 

The Home Office did not respond 

to City A.M.’s request for comment. 

Confiscation orders have become 

somewhat topical for the City after 

former UBS and Citigroup trader 

Tom Hayes was told to hand over 

£878,806 in March after he was 

convicted for Libor-rigging related 

offences last August. 


@wturvill 

THE LONDON Stock Exchange 

today welcomes a new entrant at a 

time when several firms are 

understood to be postponing and 

calling off flotations after the UK’s 

Brexit vote. 

The flagship fund of investment 

management company Dragon 

Capital, Vietnam Enterprise 

Investments Limited (VEIL), today 

begins trading on the main market 

with a launch price of 250p. As part 

of the move, the fund is delisting 

from the Irish Stock Exchange. 

“Essentially what we’re doing is 

bringing Vietnam to the world – via 

London,” Dragon Capital’s 

chairman Dominic Scriven told City 

A.M. He revealed that the company 

considered listing the fund on 

markets in Hong Kong, Singapore 

and New York, but chose London. 

“You put those together and you 

can’t improve on the LSE 

proposition, a truly global 

exchange,” he added. 

Scriven estimated that the fund 

has a market capitalisation of 

$900m (£680m) and describes it as 

“the biggest investor in the 

[Vietnamese] stock market after the 

Vietnamese government”. 

In recent days, it has emerged 

that the likes of Hollywood Bowl 

and NewDay Group have put off 

initial public offerings (IPOs) on the 

London Stock Exchange, with last 

month’s Brexit vote causing 

uncertainty. 

But Scriven said this was not an 

issue for Dragon. “Our pressure 

point has been to do it as early as 

possible,” he said. “And we knew… 

it was going to be late June and 

then we go ‘oh, there’s a Brexit 

vote’.” Therefore, the listing was 

pushed back to the first week of 

July.” 

Gold the safe harbour in Brexit storm 

Goldman Sachs say the price of gold will stay above $1,200 until at least 2017 

JAKE CORDELL 

@JakeCordell 

HOLDINGS in gold funds have 

jumped by one-third this year, as 

investors squirrel their money away 

in safe havens. 

Data from Bloomberg showed 

holdings in bullion-backed exchangetraded 

funds (ETFs) swelled to 1,959 

tonnes at the end of June, up from 

1,458 in January, with a flurry of 

new investments off the back of the 

UK’s vote to leave the EU. 

Gold prices hit a two-year high in 

June, and the precious metal is now 

trading at around $1,350 a tonne, up 

26 per cent since the start of the year. 

Prices have risen by $91 a tonne 

alone since the referendum. 

Michael Hsueh at Deutsche Bank 

said: “We’re likely to see these trends 

continue until the perceived risk of 

recession recedes, we get a string of 

better economic data, stronger 

growth, less demand for bonds and 

higher returns for equities — all those 

things you associate with a stronger 

recovery.” 

Analysts at Deutsche Bank and 

Goldman Sachs expect the price of 

gold to remain above $1,200 until at 

least the end of 2017.


CITYAM.COM 

Stock Spirits brews distribution 

deals as it abandons M&A strategy 

FRANCESCA WASHTELL 

@fwashtell 

TROUBLED Eastern European vodka 

maker Stock Spirits has launched 

two distribution partnerships in 

Poland, and Italy and Slovakia. 

From this month Stock Spirits 

will distribute Synergy Group’s 

super premium Beluga Vodka 

throughout Poland, while in Italy 

and Slovakia the group will 

distribute several of Distell 

International’s premium portfolio. 

This includes brands such as the 

African cream liqueur Amarula 

and the Cognac Bisquit. 

While the agreements are a 

modest expansion, consolidating 

its presence in the European 

market is a key part of its strategy 

after profits fell steeply last year. 

Until recently, Stock Spirits was 

pursuing an M&A strategy that 

raised the ire of major shareholder 

Western Gate Private Investments 

and led to the chief executive 

stepping down and the election of 

two non-executive directors to the 

board at the AGM in May. 

On 21 June, Stock Spirits 

announced it intends to pay a 

£20m special dividend on 27 July to 

investors registered on 7 July and 

that no further M&A activity will 

take place in 2016. 

Multinationals 

warned over risk 

of cyber attacks 

BILLY BAMBROUGH 

@BillyBambrough 

LARGE multinationals are being 

warned over their preparations 

against cyber attacks. 

Companies have admitted 

to feeling constrained by 

regulation, resources, and 

dependence on third parties, 

with only a fifth of IT 

decision makers confident 

they are able to deal with 

the growing threat of cybercriminals. 

Research from KPMG 

and BT found that almost half (47 

per cent) of company IT chiefs admit that 

they don’t have a strategy in place to prevent 

attacks that either blackmail or 

bribe employees to gain cyber access. 

“It’s time to think differently about 

cyber risk – ditching the talk of hackers 

– and recognising that our businesses 

are being targeted by 

ruthless criminal entrepreneurs 

with business plans 

Regulation was cited as a 

cyber security weak point 

and extensive resources,” 

said Paul Taylor, UK head of 

cyber security at KPMG. 

The report shows chief 

digital risk officers are now being 

appointed to manage security, with the 

role already filled at 26 per cent of companies 

asked.

CITYAM.COM 


NEWS 

09 

Tracey Boles 

talks to the 

outgoing 

chairman of the 

pensions lifeboat 

LADY Barbara Judge, the outgoing 

chairman of the Pension 

Protection Fund (PPF), starts our 

interview by paying tribute to 

Ros Altmann, the pensions minister. 

“Without her, there would be no PPF. 

She campaigned extremely hard for it 

to come into being. She is the perfect 

choice to be pensions minister. I have 

the utmost respect for her,” she enthuses. 

It turns out that Judge is not just an 

advocate of Altmann but of all women, 

from her inspirational mother to 

young female entrepreneurs. 

As the first female chair of the Institute 

of Directors, she wants to throw 

open the doors to other women. “Our 

member base is under 20 per cent 

women but among young members 

that proportion rises to 50 per cent. I 

believe in promoting young entrepreneurs.” 

In theory, she does not believe in 

quotas but says the results from having 

them are “excellent”, explaining: 

“Sometimes you have to kick the ball 

hard to get it to roll in the right direction.” 

What can women bring to the party? 

“Women are great multi-taskers and 

very smart. They bring diversity to the 

board table.” 

Role models are also important for 

young women to have, she believes. 

“We need to get parents and teachers 

to raise their sights for their daughters, 

to put in place the idea that they 

are equal to men. And that needs to be 

done early. 

“Times are changing but they are 

not changing fast enough.” 

She believes young women should 

be steered towards careers in science 

and engineering, adding: “A woman 

can boost her prospects by studying 

maths or accountancy. If a young 

woman studies maths, she will earn a 

third more than if she did not. I studied 

history and believe I have been 

playing catch-up my whole life.” 

For someone playing catch-up, she 

has held some very senior roles, both 

executive and non-executive, in the 

public and private sectors. A one-time 

The PPF is doing its 

job of protecting 

pensioners 

“I’m very proud of what we have achieved” 

Lady Barbara Judge believes that more young women should be studying maths 

chair of the UK Atomic Energy Authority, 

her current interests span energy 

and infrastructure as well as 

pensions. She supports a new runway 

in the south east, and believes the reactors 

at troubled Hinkley Point will 

be built because they have the support 

of the UK and French governments. 

How has she risen to such 

prominence? 

“My mother. She was a dean at the 

New York Institute of Technology and 

taught women in the 1950s and 1960s 

that they should work because they 

have a brain, and that they should 

earn their own money because money 

brings independence. She taught me 

to get back on the horse if I fell off.” 

Judge has just stood down from the 

PPF, dubbed the pensions lifeboat, 

after serving the maximum two 

terms as chairman. The PPF, which 

takes on the pension schemes of companies 

that have become insolvent, 

has grown under her stewardship. Assets 

have increased from £4.6bn in 

2010 to £23.4bn this year, while the 

ranks of members have swelled from 

47,000 to 225,000. 

“It has been a fulfilling time,” she 

says. “When I joined, people said it 

was a lifeboat that is going to sink. As 

I leave, I can safely say that the 

lifeboat is sailing straight and securely 

towards is goal – protecting defined 

benefit pensioners. 

“I am very proud of what we have 

achieved. We have steadied the ship 

and built up public confidence. We 

give pensioners the ability to sleep at 

night without worrying about the 

squalls in the economy. We weathered 

the Lehmans' crisis.” 

Judge says the regulator and ministers 

will keep a close watch on what 

happens in the future as it prepares to 

onboard members from the BHS pension 

scheme, and potentially from the 

vast British Steel scheme too: “We can 

cope with a large number of people 

coming into the PPF. It is not being 

overused: it is doing its job of protecting 

pensioners.” 

Judge is turning her hand to 

fundraising in the hope of making an 

impact on dementia in honour of her 

mother, who succumbed to the effects 

of the disease after retiring at the age 

of 88. She will be chairing a dinner in 

September on behalf of Dementia UK 

and the Alzheimer's Society. 

It is not the only task at hand for 

Judge, who once said her ambition 

was to “die at her desk”. She is poised 

to take up the chairmanship of Cifas, 

the fraud prevention service.


Sainsbury’s set 

to shutter 16 

Netto UK stores 

HELEN CAHILL 

@HelCahill 

SAINSBURY’S is ditching its partnership 

with European discounter Netto 

and plans to close 16 Netto UK stores 

in August. 

Around 400 jobs in the stores are 

now at risk as Sainsbury’s focuses 

instead on its acquisition of Argos 

owner Home Retail Group. 

Sainsbury’s had been looking to 

grow a footprint in the discount grocery 

market, but after reviewing trading 

data, customer insights, and 

expansion costs, decided Netto would 

not be able to grow quickly enough. 

Mike Coupe, chief executive of 

Sainsbury’s, said the company had 

learned about the discount grocery 

market from the trial, but said “Netto 

would need to grow at pace and scale, 

requiring significant investment and 

the rapid expansion of the store estate 

in a challenging property market” for 

the venture to work. 

“Consequently, we have made the 

difficult decision not to pursue the 

opportunity further and instead focus 

on our core business and on the 

opportunities we will have following 

our proposed acquisition of Home 

Retail Group,” Coupe said. 

Analysts blamed tough competition 

in the market for the decision. 

“Netto couldn’t match the competition 

it faced from the likes of Aldi and 

Lidl,” Fraser McKevitt, head of retail 

and consumer insight at Kantar 

Worldpanel said. 

The joint venture between Dansk 

Supermarked Group’s (DSG) Netto and 

Sainsbury’s began in June 2014. 

Per Bank, chief executive of DSG, 

said: “While we are pleased with the 

performance of the stores to date, it 

has become clear to both partners that 

the business requires greater scale 

over a short period of time to achieve 

long-term success. Reaching scale has 

Slug and Lettuce is one of Stonegate’s major bar brands. It also owns Yates bars 

Revenues up at Slug and Lettuce 

owner Stonegate Pub Company 


@fwashtell 

SLUG and Lettuce owner Stonegate 

Pub Company toasted healthy 

double-digit revenue growth in its 

first-half results yesterday. 

Total revenue across Stonegate’s 

660 pubs and bars was up 12.8 per 

cent to £342m for the 28 weeks to 

10 April. Like-for-like revenue 

increased 2.1 per cent, while likefor-like 

pub profit rose 10.6 per 

cent. 

Stonegate acquired Maclay’s and 

TCG in July and September of last 

year respectively. It said it has 

traded well since April and has 

capitalised on the Euro 2016 sports 

championship this summer by 

offering customers both Sky and BT 

in 394 of its pubs. 

CITYAM.COM 

Britons shun 

shops to spend 

on experiences 


@fwashtell 

BRITONS are increasingly spending 

their time and money on 

experiences rather than shopping, 

according to research from 

Deloitte. 

Spending on leisure activities 

such as going out for meals, 

holidays and TV streaming services 

is growing nearly twice as fast as 

the retail sector. The industry as a 

whole is now worth £117bn and 

since 2010 has grown at a rate of 

five per cent per year. 

In the first quarter of 2016, 95 

per cent of 3,000 survey 

respondents said they had spent 

money on leisure activities. The 

most popular activity was eating 

out (85 per cent), while 77 per cent 

channelled their funds into inhome 

activities such as film, TV 

and music streaming. 

“Leisure is no longer defined as 

an out-of-home activity,” Simon 

Oaten, partner for hospitality and 

leisure at Deloitte, said. “In-home 

leisure has continued to grow since 

the recession and consumers now 

regard these activities as part of 

their day-to-day leisure routine.” 

More trouble for supermarkets as 

short-sellers bet against the sector 

Leeds fund snaps up 

Ambulance converter 

JAKE CORDELL 

@JakeCordell 

TRADERS believe the worst is far from 

over for the UK’s embattled 

supermarkets, as short-sellers have 

piled in to bet against the sector in 

the next few months. 

More than three times as many 

shares are held by people hoping to 

profit from a near-term fall in the 

share price of the UK’s leading 

supermarkets as in any other sector 

on the FTSE 350, according to 

Bloomberg data compiled by 

Liberum. 

So-called short-sellers bet against a 

share price going up, so they make a 

profit when the company value 

drops. 

It is the opposite of the traditional 

‘long’ position, where investors hold 

a share and benefit when the 

company pays out dividends or its 

share price goes up. 

Measured as a share of the sector’s 

total market value, around seven per 

cent of shares in the supermarket 

sector are held by short-sellers. 

This compares to just 1.5 per cent 

for the wider retail industry and is 

more than three-times the next 

most-shorted sector, capital goods. 

OLIVER GILL 

@ojngill 

TURNAROUND investor Endless has 

bought one of the UK’s leading vehicle 

converters. 

The Leeds-based fund yesterday 

announced the deal to buy Oughtred 

& Harrison (O&H), with the promise to 

refinance the group and inject additional 

working capital. 

O&H was established in 1988 and 

specialises in converting vehicles into 

ambulances and other types of wheelchair 

accessible transport. 

The company is based in Goole, East 

Yorkshire with 234 employees. It has 

13 main customers that comprise public 

and private ambulance trusts as 

well as local councils. 

Endless is also one of the potential 

bidders for Tata Steel.

CITYAM.COM 


NEWS 

11 

Pharma industry 

in UK could gain 

from Brexit vote 

BILLY BAMBROUGH 

@BillyBambrough 

THE UK pharmaceuticals sector could 

benefit from the country’s vote to quit 

the European Union, according to new 

research. 

A loss of some funding and a socalled 

brain drain as employees relocate 

abroad in the short term is not 

expected to have a significant impact 

on long term growth, business intelligence 

firm BMI Research found. 

“While the bearish case for the UK’s 

pharmaceutical research and development 

(R&D) sector as a result of Brexit 

has been widely articulated, the 

upside risks are underappreciated,” 

the report authors wrote. 

BMI found the UK’s strong scientific 

base and existing R&D partnerships 

with companies and organisations 

across the EU will allow it to enter 

negotiations for the continued access 

to EU R&D funds. The report did warn 

over the risks associated with renegotiation 

of the UK’s trade deals. 

“Hammering out deals with the EU 

over the coming years will entail a 

great deal of time and uncertainty, 

and there is a risk that the UK will 

receive a punitive deal as it will be 

negotiating from a perceived position 

of weakness,” BMI analysts wrote. 

“However, amid the negative sentiment 

surrounding the UK’s prospects 

of going it alone, we highlight that the 

UK’s world class science base, its 

strong position within the global R&D 

arena and the country’s international 

research collaborations will work 

towards keeping British science at the 

forefront of research.” 

Pharma accounted for the highest 

level of business R&D expenditure for 

a product group in 2014, according to 

the Office for National Statistics. It 

represented 20 per cent of total expenditure 

and clocked up almost £4bn of 

spending. It was followed by 

computer programming and information 

services activities at £2.35bn. 

SUPER RESULTS High street chemist 

Superdrug sees profits rise 62 per cent 

SUPERDRUG is set to file accounts at companies house showing operating profit of 

£62.2m in 2015, up from £38.2m the year before. Sales from like-for-like stores 

increased by 6.6 per cent, with make-up and beauty growing 11 per cent. 

Small business 

confidence fell 

before Brexit 

HELEN CAHILL 

@HelCahill 

SMALL business confidence was at 

a four-year low before the EU 

referendum, according to data 

from the Federation of Small 

Businesses (FSB). 

A survey from the FSB, 

conducted before the Brexit vote, 

also found smaller companies are 

planning to cut jobs for a second 

quarter in a row. Members said 

their profits are falling due to the 

increased cost of labour and tax 

burdens. 

Only 12.2 per cent of businesses 

surveyed said they planned new 

capital investment over the next 

year - down from 31.9 per cent a 

year ago. 

Mike Cherry, FSB chairman, said 

the government should push 

forward on expanding small 

business rate relief and that the 

Low Pay Commission should be 

“especially vigilant” when making 

recommendations on minimum 

wage rates next year. 

“We need to do everything we 

can to support small firms to grow, 

create jobs, and weather the harsh 

economic headwinds,” he added. 

Clarkson’s share price sinks after it 

warns profits will be lower this year 

HELEN CAHILL 

@HelCahill 

SHIPBROKER Clarkson’s share price 

tanked 16.1 per cent to 1,850p 

yesterday after the group said its 

profits will be “materially lower” this 

year. 

The group said global economic 

uncertainty and an imbalance 

between supply and demand in 

shipping and offshore meant the 

industry “remains depressed”, 

despite the recovery of oil prices. 

The FTSE 250 group said: “While 

recent strengthening of the US 

dollar against sterling, if sustained, 

will offer some limited enhancement 

to reported profits, the board 

anticipates that as a consequence of 

the challenges... profits for 2016 will 

be materially lower.” 

CLARKSON 

2,300 P 

2,200 

2,100 

2,000 

1,900 

1,800 

1,700 

4 July 

1,850.00 

28 June 29 June 30 June 1 July 

4 July 

Fund manager to keep London 

as European base after Brexit 


@wturvill 

COLUMBIA Threadneedle has committed 

to keeping its European headquarters 

in London after Brexit. 

The fund manager confirmed it has 

“begun the process of applying to 

expand the scope of our Luxembourgbased 

management company to 

enable us to establish an asset management 

presence in the EU”. 

But a spokesperson added: “We will 

not be moving our EMEA 

headquarters from London and the 

vast majority of our employees can 

expect to remain where they are currently 

located.” 

The commitment to London comes 

at a time when several asset managers 

are being linked with staff and fund 

movements away from the UK. 

The Investment Association is holding 

a meeting today to discuss the 

impact of Brexit with its asset 

manager members.


CITYAM.COM 

Four years and 

three cases: How 

the Libor scandal 

has unfolded 

FOUR years ago, Bob Diamond 

sensationally quit as chief exec 

of Barclays as a scandal over 

Libor-rigging sent shockwaves 

through London’s banks. 

Three days after, on 6 July 2012, the 

Serious Fraud Office (known as the 

SFO) kicked off an investigation into 

the manipulation of Libor – the 

“London Interbank Offered Rate”, an 

interest rate benchmark used for 

everything from commercial loans to 

mortgages. 

Since then, banks have been fined 

billions by regulators on both sides of 

the Atlantic, for offences related to 

benchmark rigging, while three 

criminal cases have gone through the 

British courts. 

Here’s how they panned out: 

LIBOR 1 – VERDICT DELIVERED 

AUGUST 2015 

The first court case was decided in the 

SFO’s favour, with a jury finding former 

UBS and Citigroup trader Tom 

Hayes guilty of offences related to manipulating 

yen-linked Libor. Hayes was 

initially sentenced to 14 years in 

prison on eight counts of conspiracy 

to defraud, although this was reduced 

to 11 years by the Court of Appeal in 

December. 

Hayes had intended to appeal to the 

Supreme Court but his application 

was blocked earlier this year. There is 

currently a crowdfunding campaign 

running on Fundrazr to cover the cost 

of taking his case to the Criminal 

Cases Review Commission and, at 

time of writing, it had raised £23,705 

of its £150,000 target. 

Hayes has also been ordered to hand 

over £878,806 under a confiscation 

order. 

LIBOR 2 - VERDICT DELIVERED 

JANUARY 2016 

In a bit of a blow for the SFO, six 

former brokers who were accused of 

conspiring with the already-convicted 

Hayes were found not guilty at the 

start of the year. 

The jury returned to deliver not 

guilty verdicts for five of the men – 

Colin Goodman and Danny Wilkinson, 

both ex-Icap workers; Noel Cryan, 

formerly of Tullett Prebon; and Terry 

Farr and James Gilmour, who both 

used to work for RP Martin – just one 

day after being sent out to consider its 

verdict. The sixth defendant, former 

ICAP broker Darrell Read, was also 

found not guilty of one charge against 

him on the same day the others were 

acquitted, before the jury returned 

the following morning to find him 

not guilty of a second charge. 

LIBOR 3 - VERDICT DELIVERED 

JUNE 2016 

After a trial lasting just shy of three 

months, former Barclays traders Jay 

Merchant and Alex Pabon and former 

Libor submitter Jonathan Mathew 

were all found guilty on a charge of 

conspiracy to defraud relating to 

manipulating US dollar linked Libor. 

The jury was unanimous in its verdict 

for Merchant, but was split 11-1 for 

Mathew and 10-2 for Pabon. 

Meanwhile, the jury was unable to 

agree on a verdict for ex-Barclays 

traders Stylianos Contogoulas and 

Ryan Reich. 

The SFO went into the courtroom 

having secured a guilty plea from 

former Barclays submitted Peter 

Johnson around a year and half before 

the trial even began. 

HAYLEY KIRTON 

WHO WERE THE EX-BANKERS AT THE LATEST TRIAL? 

ALEX PABON 

Guilty, 10-2 majority verdict 

Pabon was a Barclays trader until 

the summer of 2006, having joined 

in 2004. He told the court that he 

had subsequently moved to Texas 

and turned his back on banking. 

RYAN REICH 

Jury did not agree on verdict 

Described by his lawyer as “the big 

bald one”, Reich was also a former 

Barclays trader and, essentially, 

Pabon’s replacement after he left 

the bank. 

Q&A 

WHAT IS LIBOR? 

The London interbank offered rate (Libor) 

is a benchmark rate which is set daily for 

five major currencies and for seven 

different borrowing periods, ranging from 

overnight loans to 12 months. 

HOW IMPORTANT IS IT? 

Libor is used to underpin numerous 

financial contracts worth hundreds of 

trillions of dollars. Uses for the benchmark 

rate include pricing interest-rate swaps in 

the derivatives market, calculating interest 

rates on mortgages and other loans and as 

JAY MERCHANT 

Guilty, unanimous verdict 

Merchant, who was line manager 

to both Pabon and Reich, was the 

highest paid of all the men on 

trial, pocketing £2.2m for his 

efforts in 2007. 

STYLIANOS CONTOGOULAS 

Jury did not agree on verdict 

Contogoulas was a former Barclays 

trader and, to a certain extent, a de 

facto IT guy. He studied computing 

at Imperial, and completed an MBA 

at Manchester Business School. 

a general barometer for confidence in the 

banking sector. 

WHO IS RESPONSIBLE FOR 

SETTING THE RATE? 

At present, the Intercontinental Exchange 

(ICE) is responsible for collecting rates from 

the contributor banks, of which there are 

between 11 and 18 depending on which 

variant of Libor is being set, which are then 

put through an averaging process to 

calculate the final published rate. The rate 

has previously been set by the British 

Bankers’ Association. 

WHAT IS THE LIBOR QUESTION? 

Libor submitters at the contributor banks 

are asked to submit their rate based on 

their answer to the Libor question: “At 

what rate could you borrow funds, were 

PETER JOHNSON 

Pleaded guilty before the trial 

Johnson pleaded guilty in October 

2014, making him the first person 

to be convicted for Libor-related 

offences as part of the Serious 

Fraud Office’s investigation. 

JONATHAN MATHEW 

Guilty, 11-1 majority verdict 

Mathew was the only Libor 

submitter to be standing trial, his 

boss Peter Johnson having pleaded 

guilty before the case started. He 

joined the bank at the age of 19. 

you to do so by asking for and then 

accepting interbank offers in a reasonable 

market size just prior to 11 am London 

time?” 

WHAT’S THE SCANDAL ABOUT? 

In a very basic nutshell, those involved are 

accused of breaking so-called Chinese 

Walls put in place to avoid conflicts 

between traders and those submitting the 

rates. The FCA has previously fined a 

number of institutions, including Barclays, 

Deutsche Bank and UBS, over attempts to 

manipulate the rate. In total, the City 

watchdog has levied over £757m in fines 

for Libor and Euribor – the Euro Interbank 

Offered Rate – manipulation to date. Other 

regulators in other jurisdictions have also 

dished out fines of their own. 

HAYLEY KIRTON 

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CITYAM.COM 

THECAPITALIST 

Got A Story? Email 

thecapitalist@cityam.com 

THE BEACHES ARE BACK Brace yourself 

for the sandy scrum coming to London 

DYSON BLOWS HOT AIR ON OXFORD STREET 

Vacuum cleaner and electronics-maker extraordinaire Dyson 

is back in the news today as it launches a “Demo space” on 

Oxford Street. Dyson has been very clear that this is not a 

store in the way most customers would understand. Instead 

its “space” will offer blow dries to curious hair owners who 

want to experience its hair dryers, while anal tidiers will be 

able to try vacuum cleaners with “64 different varieties of 

dust and debris on four different floor surfaces”. It can’t just 

be The Capitalist that finds that a morbidly fascinating 

prospect. However, Dyson’s new Demo zone sounds like it 

will be the latest in a line of exhibitionist retail galleries, like 

the cavernous and over-the-top Nespresso store on Regent 

Street, or the very worst of the thinking behind Apple stores. 

QUOTE OF THE DAY 

I know I’m older 

than God... 

Square Mile veteran David 

Buik, who began his City 

career in the 1960s, says that 

his age is not responsible for 

an inability to hear the BBC’s 

Wimbledon commentary. 

“John Inverdale needs to 

speak up! He’s mumbling!” 

Buik blasted yesterday. 

LONDON Beach Rugby 2016 is back for a fourth year. Using 250 tonnes of sand, the five-aside 

tournament will take over Finsbury Square on 29 and 30 July. Corporate teams are 

encouraged and losing sides can drink it away on the pitch at the after-dark parties.


Japanese messaging 

app Line gears up for 

this year’s biggest float 

LYNSEY BARBER 

@lynseybarber 

JAPANESE messaging app Line has 

hiked the price of its initial 

public offering in what’s expected 

to be the biggest 

tech float so far this year. 

The WhatsApp-like 

app has set its target 

price offering at between 

2,900 (£21.30) yen 

and 3,300 yen, higher 

than its previous target 

of between 2,700 yen and 

3,200 yen ahead of a final 

pricing on 11 July. 

That pricing would set Line on 

course for an intital public offering 

worth up to $1.3bn (£980m) in a dual 

listing in Tokyo and New York, including 

an overallotment option. 

Line is the most used messaging app 

in Japan and the sixth most used in 

the world with 218m users due to high 

demand. 

Its public offering follows hot 

on the heels of US tech unicorn 

Twilio which successfully 

floated in June with 

Line has 218m users and 

is the most popular 

messaging app in Japan 

a market capitalisation of 

more than $2bn, the first 

big tech listing of the year 

putting investors’ appetites to 

the test. 

Square, the payment technology 

firm run by Twitter chief executive 

Jack Dorsey, debuted on New York 

Stock Exchange in November last year. 

Take a Breather: US startup offers office rentals from 30 minutes to an entire day 

North American app for office 

space rental comes to capital 

LYNSEY BARBER 

@lynseybarber 

AN AMERICAN startup similar to 

Airbnb but for renting short-term 

office space and meeting rooms has 

expanded to London. 

Backed by billionaire investor 

Peter Thiel’s Valar Ventures, Breather 

is expanding to London in its first 

move outside North America. 

Currently, it offers office rentals in 

more than 100 locations in cities 

such as San Francisco, New York City, 

Boston, Chicago and Montreal, for as 

little as 30 minutes to an entire day. 

CITYAM.COM 

Crowdcube to 

raise over £5m 

from investors 

LYNSEY BARBER 

@lynseybarber 

CROWDCUBE is defying the Brexit 

jitters raising its own new round of 

funding via – where else – but its own 

round of crowdfunding. 

One of the early pioneers of the 

equity crowdfunding concept, the 

site has revealed ambitious new 

plans to raise more than £5m from 

investors. 

“In just five short years we have 

firmly established our position as a 

global fintech pioneer and the UK’s 

dominant equity crowdfunding 

platform but we’re not stopping 

there,” said chief executive Darren 

Westlake. 

“The UK’s growing investment 

crowdfunding market, which was 

estimated to be worth £245m in 

2015, is vibrant post-Brexit, with 

investment up 18 per cent on 

Crowdcube after the disappointing 

out vote,” he added. 

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10629160426 A 

Tech overtakes finance 

among top global firms 

LYNSEY BARBER 

@lynseybarber 

TECHNOLOGY has stolen a march 

on finance, with the success of 

companies such as Alphabet and 

Microsoft helping the innovative 

sector surpass the traditional world 

of financial services among the 

world’s top 100 companies over the 

past year. 

Technology firms in the list 

notched up a combined value of 

$3bn compared to financial firms’ 

$2.7bn and the $2.6bn value of 

consumer goods companies. 

Apple held its position at the top 

of the ranking, compiled by PwC, 

despite losing $121bn in market 

value over the past year to the end 


@nickersonjw 

SOUTHERN Railway has been 

given permission by the 

government to introduce an 

emergency timetable from next 

Monday, allowing them to cancel 

350 more trains a day, a union has 

warned. 

The RMT union said the figures 

were confirmed to the union at a 

meeting with Govia Thameslink 

(GTR), which runs Southern 

Railway, on Friday and that the 

emergency timetable will come 

into effect on Monday 11 July. 

The union added that the 

of March, and the overall value of 

the world’s top 100 firms falling 

four per cent – the most significant 

decrease since the financial crisis, 

with a cash value of $668bn. 

Alphabet closed the gap on 

Apple in second place, 

narrowing its market 

capitalisation from $350bn 

to just $86bn, while 

Microsoft rounded out the 

top three. Facebook was in 

sixth position while Amazon 

entered the top 10 for the first 

time. 

Tech firms have better weathered 

more choppy conditions in the 

global markets, particularly 

conditions in China and Europe’s 

struggle with economic growth. 

transport select committee will 

meet today to discuss the 

franchise. 

RMT general secretary Mick 

Cash said in a statement: “This 

latest savage attack on passenger 

services by GTR is nothing to do 

with staff sickness and everything 

to do with gross mismanagement 

of this franchise and the failure 

to employ enough guards and 

drivers to fill the current rosters 

and diagrams. 

“The continuing attempt to 

blame the frontline workforce for 

this crisis is a cynical and 

cowardly ploy that will not wash 

with the travelling public.” 

The US extended its dominance 

of the ranking with companies 

located in the country making up a 

62 per cent share, up from 57 per 

cent the previous year, or a 

$314bn increase in value. 

The top 10 ranking is 

Apple tops ranking of 

world’s top 100 firms 

now made up of entirely 

US companies, the research 

noted. 

“The US has extended its leading 

position by using their global 

reach, financial strength and 

Train wreck: RMT union claims Southern Rail 

has been given permission to cancel 350 trains 

A Department for Transport 

spokesman said: “We are clear 

that GTR passengers are not 

getting the service they deserve 

and the current situation is 

unacceptable. 

“We are aware that GTR is 

considering some changes in 

order to strengthen their 

timetable in the face of ongoing 

disruption, so as many services as 

possible can run. 

“When this happens, operators 

are contractually obliged to 

inform us in advance, but these 

decisions are taken only when 

there is no other solution,” the 

spokesman added.

CITYAM.COM 


NEWS 

15 

German investor 

calls for John 

Menzies to split 

OLIVER GILL 

@ojngill 

JOHN MENZIES, the distribution and 

aviation services company, faced fresh 

calls yesterday for change from an 

activist investor after it upped its stake 

in the troubled company. 

Shareholder Value Management 

(SVM) has built up a seven per cent 

shareholding, and yesterday urged the 

leadership to split the Edinburgh-based 

company into two entities. 

“SVM strongly urges the company to 

separate the aviation business from the 

distribution business, a move that 

would be immediately and 

significantly value accretive,” it said in 

a statement to the stock exchange. 

Such a split was proposed in April by 

another shareholder, Lakestreet 

Capital, which was rumoured to be 

planning to vote down the re-election 

of former chairman Iain Napier. 

This led to Napier standing down just 

two days before the company AGM in 

Recently joined City Giving Day 

Why are you supporting CGD? 

City Giving Day is a fantastic 

opportunity for Saunderson House to 

emphasise the importance of our 

focus on people and being socially 

responsible. We are an enthusiastic 

team and City Giving Day encourages 

everyone to remember our charity 

support goals. 

Which charities do you support? 

Action for Children was appointed our 

charity partner by employees. They 

work in the heart of local 

communities, providing support to the 

young and vulnerable. We also 

CHARITY IN ACTION 

In May, 10 

employees 

participated in the 

Tough Mudder 

obstacle course, 

putting their sense 

of humour and 

physical fitness to 

the test. They 

raised £3,220 for 

Action for 

Children. 

May, a departure that had been preceded 

by the resignation in January 

of CEO Jeremy Stafford for “personal 

reasons” and of chief financial officer 

Paula Bell in April. 

SVM added it felt the board’s troubles 

were now behind it. 

“SVM believes that the company - 

after two challenging years – is finally 

on the right track to take the 

appropriate actions to realise value 

for its shareholders,” it said. 

Former non-executive director, 

Dermot Jenkinson took over from 

Napier as interim chairman after 

agreeing to lead the process to find 

a permanent replacement. 

But SVM analyst Gianluca Ferrari 

questioned whether Jenkinson was 

the right person to do this as he 

had connections through his wife 

to the Menzies family, the largest 

shareholder. 

“Accordingly, SVM encourages 

the timely nomination of a new 

independent chairman,” SVM said. 

sponsored the 2015 annual Christmas 

carol concert at St Bartholomew’s 

Hospital, a renowned teaching 

hospital located minutes from our 

office. We are sponsoring again this 

year. 

How will you celebrate CGD? 

This year Saunderson House will be 

celebrating City Giving Day with a staff 

sweet and savoury bake off. We will 

also be encouraging employees to get 

involved with volunteering by 

showcasing these opportunities 

within the office on the day. All funds 

will go to Action for Children! 

Saunderson House’s 

donations will 

improve some of the 

most disadvantaged 

children’s lives and 

help them to reach 

their potential. 

Rachel Mederson, 

Action for Children 

REGISTER NOW AT 

WWW.THELORDMAYORSAPPEAL.ORG/CGD 

Pension regulator extends Capita 

contract in £37m three-year deal 

OLIVER GILL 

Pensions Regulator, said: “The those yet to fully implement it. The 

continuation of our partnership with firm will still administer some “noncomplex” 

correspondence on behalf 

@ojngill 

Capita will ensure stability and 

SUPPORT services giant Capita was consistency, taking us to the point of The Pensions Regulator, such as 

yesterday awarded a contract 

where all existing employers 

issuing non-compliance penalty 

extension from The Pensions 

will have undergone autoenrolment.” 

had awarded Capita the contract 

notices. The Pensions Regulator 

Regulator in a deal worth £37m. 

The deal will see Capita continue to Under the extended terms, 

in 2011 for seven years. The deal 

work with smaller firms, ensuring Capita will control 

takes the contract’s value to £142m. 

the implementation of the automatic communications to 

enrolment of workplace pensions. employers using autoenrolment 

as well as 

Lesley 

The Pensions Regulator boss 

Lesley Titcomb, head of The 

Titcomb 

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CITYAM.COM 


FEATURE 

17 

MONEY TRANSFER 

ADVERTISEMENT FEATURE 

Save money on international transfers 

You could cut the 

costs of your 

transfers by using 

a currency 

specialist as an 

alternative to your 

bank 

According to the latest World 

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people – 3.4 per cent of the 

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people comes a significant movement 

of money: in 2015, personal 

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This number is based on 

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Whether for personal reasons such 

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City A.M. International Payments – 

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SAVE MONEY 

International transfer costs are 

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SECURITY 

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FOREIGN EXCHANGE 

PROTECTION 

The upcoming EU referendum has 

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Take sterling’s performance 

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If you think the market exchange 

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moneycorp offer two types of 

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£ A limit order allows you to set an 

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In addition to providing a personal 

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“I have recently switched to using moneycorp” 

CITY A.M. has teamed up 

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Mr. Martin decided to change his 

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‘I had been using my primary 

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Most people use high street 

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I found moneycorp 

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and rise to a maximum of £15 for 

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£ For competitive rates and the 

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18 MARKETS TUESDAY 5 JULY 2016 

CITYAM.COM 

CITYDASHBOARD 

YOUR ONE-STOP SHOP BROKER 

VIEWS AND MARKET REPORTS 

In association with 

LONDON REPORT BEST OF THEBROKERS EUROPEAN 

To appear in Best of the Brokers, email your research to notes@cityam.com REPORT 

Brexit recovery 

falters as property 

shares weaken 

THE TOP shares index 

retreated from a 10-month 

high yesterday as weaker 

property and housebuilding 

stocks weighed on the 

market. The blue-chip FTSE 100 

index, which rose in the past four 

straight sessions, closed 0.8 per cent 

lower at 6,522.26 points. 

Property stocks British Land and 

Land Securities were the worst 

performers, down 7.1 per cent and 

5.7 per cent respectively, while 

housebuilders Persimmon and 

Taylor Wimpey fell 6.8 per cent and 

6.3 per cent respectively. 

The sector was hit as data showed 

Britain’s construction industry 

suffered its worst contraction in 

seven years in June as concerns over 

the European Union membership 

referendum peaked in the run up to 

the vote. 

On the positive side, precious 

metal miners climbed to fresh highs, 

tracking gains in gold and silver 

prices. Randgold Resources hit to a 

record high and Fresnillo reached its 

best level since late 2012. Their 

shares closed 4.4 per cent and 7.7 per 

cent higher respectively. 

FTSE 

6,600 

6,400 

6,200 

6,000 

5,800 

28 June 29 June 30 June 1 July 

4 July 

6,522.26 

4 July 

ASOS 

4,500 

4,250 

4,000 

3,750 

3,500 

P 

28 June 

29 June 30 June 

1 July 4 July 

Online fashion retailer Asos was cut from Deutsche Bank’s buy list yesterday, and 

given a “hold” rating. While Asos will benefit from weakness in sterling, the 

likelihood of strong results next week is already priced into a valuation of 60 times 

earnings, Deutsche said. The company has a price target of 4,400p, and closed 

yesterday at 4,089p, down around 1.5 per cent on the broker’s rating change. 

RIGHTMOVE 

3,900 

3,800 

3,700 

3,600 

3,500 

3,400 

P 

4 July 

4,089.00 

4 July 

3,500.00 

28 June 29 June 30 June 1 July 4 July 

Barclays’ analysts have downgraded their recommendation on shares of Rightmove 

from “overweight” to “underweight” and lowered their target price from 4,550p to 

4,300p. The adjustment is a result of the “jolt” of the UK referendum on European 

Union membership and new assumptions for foreign exchange rates after a sharp 

fall in value of the pound. Lower macroeconomic assumptions also had an effect. 

Post-Brexit 

recovery fades 

THE post-Brexit recovery across 

European markets sputtered to a 

halt yesterday with major equity 

indices lower and safe-haven demand 

for precious metals helping the price of 

silver surge to near a two-year high. 

Europe’s Stoxx 600 fell 0.7 per cent and 

in bond markets, worries about the 

health of Italian banks and some €20 

bn ($22.2 bn) of bond supply in the 

region this week combined to halt a 

post-Brexit tumble in regional 

borrowing costs. Italian banking index 

fell more than 3.5 per cent yesterday, 

while the European Central Bank 

asked Italy’s Banca Monte dei Paschi 

di Siena to slash its bad debts by 40 

per cent over three years, heaping 

more pressure on Rome and Brussels 

to stabilise the Italian banking system. 

Italy is in talks with the European 

Commission on devising a plan to 

recapitalise Italian lenders with public 

money limiting losses for bank 

investors, an EU spokeswoman said. 

Meanwhile, silver rose three per cent 

to $20.30 an ounce, breaking the $20 

level for the first time in nearly two 

years. 

CITY MOVES WHO’S SWITCHING JOBS 

SIGN UP TO RECEIVE THE DAILY CITY MOVES 

EMAIL SERVICE AT CITYAM.COM/CITY-MOVES 

BOND DICKINSON 

National law firm Bond 

Dickinson has appointed 

Charlie Reid as its new 

banking and finance partner in 

its London office. He joins the 

firm from Norton Rose 

Fulbright where he was a 

senior associate. Charlie 

gained experience in the 

London office of Morrison & 

Foerster developing its 

London banking practice for eight years. Prior to 

joining Morrison & Foerster he qualified with SJ Berwin 

in 2003 and worked with the firm’s media finance 

team. In his new role, Charlie will strengthen Bond 

Dickinson’s London and national offering and use his 

international experience to help clients. 

LINKLATERS 

Linklaters has appointed Matthew Middleditch as 

global chairman of its corporate division and Aedamar 

Comiskey as global head of the corporate division. 

Matthew is currently the global head of the firm’s 

corporate division and is based in the firm’s Hong Kong 

office. He’s been a partner at the firm since 1990 and 

has advised on a range of major M&A deals. 

Meanwhile, Aedamar is a corporate lawyer based in 

London who has a track record in leading complex 

public and private M&A transactions. She is the lead 

relationship partner for a number of the firm’s FTSE100 

and FTSE250 clients and has done a number of highprofile 

M&A deals in the Latin America market. 

AXA IM 

AXA Investment Managers has appointed John 

Stainsby as head of UK client group. John will lead the 

firm’s UK distribution efforts across the institutional 

and wholesale segments. John joins AXA IM from JP 

Morgan Asset Management where he spent 16 years, 

most recently as head of UK institutional business. 

Prior to this he was head of global equity client 

portfolio management. Previously, John launched the 

UK office and led the sales and marketing efforts for 

emerging market fund manager Lloyd George 

Management. John also spent 12 years as an analyst 

and fund manager at Schroders managing equity 

portfolios. 

CERNO CAPITAL 

Jonathan Reed has joined global multi-asset 

investment manager Cerno Capital as a private client 

director. He brings over 10 years of experience and 

industry knowledge to Cerno Capital, having 

previously worked at financial firms including HSBC 

Private Bank, Seven Investment Management and 

Brown Shipley. In his new role, Jonathan will be 

actively involved in further expanding the firm’s private 

client base, as well as developing and managing 

existing client relationships. 

To appear in CITYMOVES please email your career updates and pictures to citymoves@cityam.com 

 

 

 

 

 

 

 

 

 

 

Open an account at spreadco.com 

Leveraged products are high risk, 

losses may exceed deposits

Gold............................................................1350.75 10.75 

Silver .............................................................20.36 1.12 

Brent Crude....................................................50.15 0.61 

Krugerrand ................................................1348.30 14.70 

Palladium....................................................593.00 6.00 

Platinum ....................................................1033.00 29.00 

Tin Cash Official ........................................17967.50 550.00 

Lead Cash Official .......................................1867.25 52.75 

Zinc Cash Official........................................2142.50 26.25 

Copper Cash Official ..................................4919.50 136.25 

Aluminium Cash Official ............................1652.50 7.75 

Nickel Cash Official ..................................10285.00 752.50 

Aluminium Alloy Cash Official ..................1530.00 0.00 

Cocoa Futures............................................3034.00 0.60 

Coffee 'C' Futures..........................................146.57 1.02 

Feed Wheat Futures .....................................119.75 2.15 

Soybeans Futures Continuation Contract ..1168.65 -0.15 

AIR LIQUIDE......................................................94.47 -0.21 123.65 88.25 

AIRBUS GROUP .................................................51.29 -0.19 68.50 49.51 

ALLIANZ N........................................................126.15 -1.15 170.00 119.05 

ANHEUS.-BUSCH INBEV ...................................117.25 -1.00 124.20 87.73 

ASML HLDG.......................................................87.29 -0.80 98.92 70.25 

AXA....................................................................17.55 -0.31 26.02 16.11 

BANCO SANTANDER ...........................................3.49 -0.02 6.73 3.15 

BASF N .............................................................68.87 -0.59 85.87 56.01 

BAYER N...........................................................90.55 -0.14 138.00 83.45 

BBVA...................................................................5.10 -0.02 9.15 4.50 

BMW................................................................66.79 -1.00 104.85 64.98 

BNP PARIBAS-A- ..............................................39.23 -0.69 61.00 35.27 

CARREFOUR......................................................22.45 -0.06 31.41 20.90 

DAIMLER N .......................................................54.24 -0.50 86.59 52.00 

DANONE ...........................................................63.93 -0.27 66.50 51.73 

DEUTSCHE BANK N............................................12.34 -0.22 32.31 12.05 

DEUTSCHE POST N.............................................25.16 -0.24 29.10 19.55 

DEUTSCHE TELEKOM N .......................................15.14 -0.11 16.98 12.94 

E.ON N................................................................9.33 0.19 12.69 7.08 

ENEL...................................................................3.98 0.01 4.45 3.33 

ENGIE ...............................................................14.55 0.13 18.12 12.34 

ENI ....................................................................14.52 -0.30 16.34 10.93 

ESSILOR INTL ...................................................119.40 -0.15 123.92 94.08 

FRESENIUS .......................................................66.20 -0.03 70.00 52.39 

GENERALI..........................................................10.37 -0.30 18.27 9.93 

IBERDROLA..........................................................6.11 0.05 6.60 4.80 

INDITEX ............................................................30.01 0.02 35.38 26.00 

ING GROUP.........................................................9.03 -0.14 16.00 8.30 

INTESA SANPAOLO ..............................................1.63 -0.05 3.65 1.52 

L'OREAL...........................................................173.40 0.95 178.95 140.40 

LVMH ..............................................................136.90 0.75 176.60 130.55 

MUENCH RUECKVERS N...................................150.50 -1.75 193.65 142.80 

NOKIA ................................................................4.98 -0.10 7.11 4.48 

ORANGE.............................................................14.41 -0.18 16.98 12.21 

ROY.PHILIPS ......................................................22.31 -0.18 26.10 20.48 

SAFRAN ............................................................60.15 -0.92 72.45 48.87 

SAINT GOBAIN...................................................34.12 -0.85 44.84 31.47 

SANOFI .............................................................75.05 0.03 101.10 62.50 

SAP...................................................................67.26 -0.14 75.75 53.91 

SCHNEIDER ELECTRIC........................................53.05 -0.68 65.26 45.32 

SIEMENS N ........................................................91.75 -0.31 100.90 77.91 

SOCIETE GENERALE...........................................27.80 -0.59 48.77 25.00 

TELEFONICA........................................................8.63 -0.04 13.91 7.45 

TOTAL................................................................43.38 -0.38 44.64 34.21 

UNIBAIL-RODAMCO ........................................230.20 -0.80 257.85 212.05 

UNICREDIT ...........................................................1.81 -0.07 6.22 1.78 

UNILEVER CERT ................................................42.05 -0.11 42.84 32.86 

VINCI ...............................................................63.56 -0.79 68.29 51.10 

VIVENDI............................................................16.89 -0.08 24.83 14.87 

VOLKSWAGEN VZ..............................................111.40 -2.25 214.55 86.36 

Price Chg High Low 

EU SHARES 

3M...................................................................175.54 0.42 176.08 134.00 

ALPHABET-A...................................................710.25 6.72 810.35 539.85 

ALPHABET-C ...................................................699.21 7.11 789.87 515.18 

ALTRIA GROUP.................................................69.02 0.06 69.63 47.41 

AMAZON.COM.................................................725.68 10.06 731.50 425.57 

AMERICAN EXPRESS ........................................60.69 -0.07 81.66 50.27 

AMGEN ...........................................................154.28 2.13 181.81 130.09 

APPLE ..............................................................95.89 0.29 132.97 89.47 

AT&T.................................................................43.47 0.26 43.55 30.97 

BANK OF AMERICA ............................................13.10 -0.17 18.48 10.99 

BERKSHIRE HATHAWY-B ................................143.96 -0.83 148.03 123.55 

BOEING CO......................................................129.69 -0.18 150.59 102.10 

BRISTOL-MYERSSQUIBB....................................73.78 0.23 75.12 51.82 

CATERPILLAR....................................................76.45 0.64 84.89 56.36 

CHEVRON ........................................................104.15 -0.68 105.00 69.58 

CISCO SYSTEMS ................................................28.80 0.11 29.49 22.46 

CITIGROUP .......................................................42.17 -0.22 60.95 34.52 

COCA-COLA CO ..................................................45.12 -0.21 47.13 36.56 

COMCAST-A......................................................65.28 0.09 65.42 50.01 

DU PONT NEMOURS&CO ..................................64.36 -0.44 75.72 47.11 

EXXON MOBIL...................................................93.84 0.10 93.98 66.55 

FACEBOOK-A ....................................................114.19 -0.09 121.08 72.00 

GENERAL ELECTRIC ...........................................31.49 0.01 32.05 19.37 

GILEAD SCIENCES .............................................84.86 1.44 120.37 77.92 

GOLDMAN SACHS GROUP ...............................148.25 -0.33 214.61 138.20 

HOME DEPOT ..................................................129.62 1.93 137.82 92.17 

IBM..................................................................152.35 0.57 173.78 116.90 

INTEL ................................................................32.75 -0.05 35.59 24.87 

JOHNSON & JOHNSON.....................................121.29 -0.01 121.54 81.79 

JPMORGAN CHASE............................................61.26 -0.88 70.61 50.07 

MCDONALD'S..................................................120.40 0.06 131.96 87.50 

MEDTRONIC ......................................................87.03 0.26 87.38 55.54 

MERCK..............................................................57.94 0.33 60.07 45.69 

MICROSOFT........................................................51.16 -0.01 56.85 39.72 

NIKE -B- ...........................................................55.61 0.41 68.20 47.25 

ORACLE............................................................40.86 -0.07 42.00 33.13 

PEPSICO..........................................................105.63 -0.31 106.94 76.48 

PFIZER ..............................................................35.57 0.36 36.46 28.25 

PHILIP MRRS INT .............................................101.28 -0.44 102.55 76.54 

PROCTER&GAMBLE ..........................................84.78 0.11 84.99 65.02 

SCHLUMBERGER...............................................79.52 0.44 86.61 59.60 

TRAVLR COMP..................................................118.85 -0.19 119.30 95.21 

TWITTER............................................................17.28 0.37 38.82 13.73 

UNITEDHEALTH GROUP .................................140.86 -0.34 141.79 95.00 

UTD TECHNOLOGIES ........................................102.73 0.18 112.36 83.39 

VERIZON COMM ...............................................56.23 0.39 56.29 38.06 

VISA-A..............................................................74.48 0.31 81.73 60.00 

WAL-MART STORES...........................................72.81 -0.21 74.14 56.30 

WALT DISNEY-DISNEY......................................98.03 0.21 122.08 86.25 

WELLS FARGO ..................................................47.03 -0.30 58.77 44.50 

WILLIS TOWERS..............................................124.00 -0.31 130.97 104.11 

COMMODITIES 

CREDIT & RATES 

BoE IR Overnight.........................................0.500 0.00 

BoE IR 7 days..............................................0.500 0.00 

BoE IR 1 month...........................................0.500 0.00 

BoE IR 3 months.........................................0.500 0.00 

BoE IR 6 months ........................................0.500 0.00 

LIBOR Euro - overnight ..............................-0.397 0.00 

LIBOR Euro - 12 months .............................-0.061 0.00 

LIBOR USD - overnight................................0.406 0.00 

LIBOR USD - 12 months ................................1.225 0.00 

Halifax mortgage rate ................................3.990 0.00 

Euro Base Rate ...........................................0.000 0.00 

Finance house base rate .............................1.000 0.00 

US Fed funds .................................................0.42 0.10 

US long bond yield........................................2.24 -0.06 

Euro Euribor...............................................-0.369 -0.01 

The vix index................................................14.77 -0.86 

The baltic dry index...................................677.00 17.00 

Markit iBoxx EUR .......................................231.96 0.10 

Markit iBoxx GBP.......................................320.08 1.20 

Markit iTraxx................................................78.05 -1.81 


US SHARES 

€/$ 1.1157 0.0018 

€/£ 0.8392 0.0001 

€/¥ 114.37 0.1880 

/€ 1.1909 0.0003 

/$ 1.3288.5 0.0018 

/¥ 136.26 0.1190 

BAE Systems . . . . . . . . .528.5 -1.5 537.5 425.5 

Cobham . . . . . . . . . . . . .157.5 -0.3 260.4 127.5 

Meggitt . . . . . . . . . . . . .402.7 -4.7 509.5 346.5 

QinetiQ Group . . . . . . . .220.2 -4.2 274.4 212.0 

Rolls-Royce Holdi . . . . .706.5 -5.0 876.5 512.5 

Senior . . . . . . . . . . . . . .204.0 -2.1 302.5 186.0 

Ultra Electronics . . . . .1724.0 -37.0 2026.0 1595.0 

GKN . . . . . . . . . . . . . . . .267.2 -8.6 336.2 248.6 

Aldermore Group . . . . . .123.1 1.1 316.0 114.0 

Barclays . . . . . . . . . . . . .136.6 -3.5 289.0 127.2 

BGEO Group . . . . . . . .2540.0 -84.0 2630.0 1570.0 

CYBG . . . . . . . . . . . . . . .223.3 -9.1 289.5 182.8 

HSBC Holdings . . . . . . .463.8 -6.1 594.6 416.2 

Lloyds Banking Gr . . . . . .53.1 -1.2 87.7 51.2 

Metro Bank . . . . . . . . .1740.0 -18.0 2250.0 1634.0 

Royal Bank of Sco . . . . .167.5 -2.2 366.1 166.2 

Shawbrook Group . . . . .161.4 -12.2 375.0 140.0 

Standard Chartere . . . .572.0 -9.6 1002.7 386.7 

Virgin Money Hold . . . .254.6 -2.1 450.8 205.2 

Barr (A.G.) . . . . . . . . . . .478.5 -4.8 633.0 455.3 

Britvic . . . . . . . . . . . . . .605.5 -13.5 742.5 584.0 

Coca-Cola HBC AG . . .1526.0 -3.0 1629.0 1255.0 

Diageo . . . . . . . . . . . . .2101.0 -6.0 2131.0 1640.0 

SABMiller . . . . . . . . . .4362.0 -5.0 4376.5 2877.5 

Croda Internation . . . .3165.0 -31.0 3216.0 2657.7 

Elementis . . . . . . . . . . . .199.1 -2.3 261.3 180.6 

Johnson Matthey . . . .2939.0 -18.0 3083.0 2230.0 

Synthomer . . . . . . . . . .340.5 -1.0 368.1 275.1 

Victrex plc . . . . . . . . . .1509.0 -16.0 2020.0 1367.0 

AA . . . . . . . . . . . . . . . . .241.3 -7.3 382.2 209.9 

AO World . . . . . . . . . . . .147.3 4.8 189.3 119.7 

Auto Trader Group . . . .341.2 -17.4 449.6 298.4 

B&M European Valu . . .251.0 -6.7 358.5 233.1 

Brown (N.) Group . . . . .172.3 -7.1 389.1 172.2 

Card Factory . . . . . . . . .323.2 -4.3 399.0 310.0 

Darty . . . . . . . . . . . . . . .168.5 -0.2 171.8 68.0 

Debenhams . . . . . . . . . .55.0 -1.2 90.3 53.3 

DFS Furniture . . . . . . . .201.0 -7.5 349.0 195.2 

Dignity . . . . . . . . . . . .2667.0 -56.0 2748.0 2142.0 

Dixons Carphone . . . . .310.0 -12.8 500.0 310.0 

Dunelm Group . . . . . . .776.5 -20.5 1018.0 770.0 

Halfords Group . . . . . . .319.5 -12.8 561.0 313.0 

Home Retail Group . . . . .151.1 -2.0 181.5 89.7 

Inchcape . . . . . . . . . . . .634.5 -4.5 836.5 581.0 

JD Sports Fashion . . . .1143.0 -14.0 1332.0 705.5 

Just Eat . . . . . . . . . . . . .419.2 -19.1 494.9 329.1 

Kingfisher . . . . . . . . . . .319.6 -10.4 379.7 314.7 

Marks & Spencer G . . . .303.8 -16.3 550.5 285.2 

Next . . . . . . . . . . . . . . .4779.0-136.0 8015.0 4384.0 

Pendragon . . . . . . . . . . .28.2 -0.3 49.0 26.7 

Pets at Home Grou . . . .230.0 -8.0 311.2 223.8 

Saga . . . . . . . . . . . . . . .194.9 -3.8 221.4 173.9 

Sports Direct Int . . . . . .297.0 -13.8 817.5 295.3 

Ted Baker . . . . . . . . . .2295.0-100.0 3555.0 2124.0 

WH Smith . . . . . . . . . .1549.0 -59.0 1878.0 1455.0 

Balfour Beatty . . . . . . . .211.8 -8.0 272.5 190.8 

CRH . . . . . . . . . . . . . . .2158.0 -33.0 2207.0 1637.0 

Galliford Try . . . . . . . . .894.0 -39.5 1813.0 858.5 

Ibstock . . . . . . . . . . . . . .132.9 -1.5 225.0 127.7 

Keller Group . . . . . . . . .880.0 -44.0 1085.0 728.5 

Kier Group . . . . . . . . . . .987.0 -63.0 1513.0 987.0 

Marshalls . . . . . . . . . . . .230.4 -5.3 370.8 213.0 

Polypipe Group . . . . . .240.4 -12.6 362.0 238.0 

Drax Group . . . . . . . . . .323.9 -0.4 363.8 207.6 

SSE . . . . . . . . . . . . . . . .1586.0 16.0 1626.0 1321.0 

Halma . . . . . . . . . . . . .1004.0 -13.0 1023.0 713.0 

Morgan Advanced M . .223.5 -9.2 356.8 192.3 

Renishaw . . . . . . . . . . .2177.0 -29.0 2269.0 1600.0 

Spectris . . . . . . . . . . . .1799.0 -37.0 2111.0 1442.0 

Aberforth Smaller . . . .895.0 -17.0 1234.0 849.0 

Alliance Trust . . . . . . . . .521.0 -9.5 531.6 440.1 

Bankers Inv Trust . . . . .597.0 -9.0 657.0 522.0 

BH Macro Ltd. GBP . . . .1975.0 17.0 2103.0 1930.0 

British Empire Tr . . . . .508.0 -0.5 511.0 412.0 

Caledonia Investm . . .2257.0 -30.0 2511.0 2112.0 

City of London In . . . . .378.0 -5.0 408.3 341.5 

Edinburgh Inv Tru . . . .665.0 -12.0 728.0 620.0 

Electra Private E . . . . .3546.0-134.0 4019.0 3155.0 

Fidelity China Sp . . . . . .146.2 0.2 152.0 110.5 

Fidelity European . . . . .161.2 -3.8 183.0 151.2 

Finsbury Growth & . . . .608.5 -6.5 621.4 532.5 

Foreign and Colon . . . .448.5 -9.0 459.2 391.2 

GCP Infrastructur . . . . . .118.7 -1.8 123.9 114.8 

Genesis Emerging . . . .545.5 0.5 550.5 400.5 

HarbourVest Globa . . .900.0 -5.0 1377.5 825.0 

HICL Infrastructu . . . . . .170.5 0.1 172.7 150.2 

International Pub . . . . .152.5 0.0 153.5 130.3 

John Laing Infras . . . . . .128.5 -0.3 129.7 114.0 

JPMorgan American . . .308.3 -4.6 315.0 243.0 

JPMorgan Emerging . .636.0 -8.5 650.0 483.0 

Mercantile Invest . . . .1444.0 -50.0 1838.0 1375.0 

Monks Inv Trust . . . . . . .431.0 -8.2 444.0 361.1 

Murray Internatio . . . .990.0 -7.0 1009.6 742.5 

NB Global Floatin . . . . . . .91.1 0.4 98.4 84.6 

P2P Global Invest . . . . .805.0 -29.0 1090.0 803.5 

Perpetual Income . . . .359.4 -11.2 428.5 332.0 

Personal Assets T . . .38700.0 -50.0 38894.8 33130.0 

Polar Capital Tec . . . . . .608.5 -15.5 641.0 503.5 

RIT Capital Partn . . . . .1627.0 -30.0 1690.0 1436.0 

Riverstone Energy . . . .890.0 -5.0 1020.0 720.0 

Scottish Inv Trus . . . . . .637.5 -7.5 646.0 544.5 

Scottish Mortgage . . . .273.0 -2.0 280.8 220.6 

Temple Bar Inv Tr . . . .1006.0 -30.0 1180.0 940.0 

Templeton Emergin . . .514.5 3.0 520.0 371.5 

The Renewables In . . . .96.6 0.1 106.3 90.3 

TR Property Inv T . . . . .272.5 -8.0 314.9 241.7 

Witan Inv Trust . . . . . . .750.5 -12.5 814.5 683.0 

Woodford Patient . . . . .82.6 -1.1 119.3 82.5 

Worldwide Healthc . . .1910.0 14.0 2097.0 1596.0 

3i Group . . . . . . . . . . . .559.0 -7.0 583.8 389.8 

3i Infrastructure . . . . . . .182.5 -0.5 184.0 163.6 

Aberdeen Asset Ma . . .285.8 -7.2 410.1 209.3 

Allied Minds . . . . . . . . . .345.1 -15.8 563.0 267.0 

Arrow Global Grou . . . .201.5 1.0 288.0 187.8 

Ashmore Group . . . . . .300.8 -7.8 312.5 196.4 

Brewin Dolphin Ho . . . .233.5 -7.5 324.7 210.2 

Charles Taylor . . . . . . . .245.0 0.0 289.0 226.0 

City of London In . . . . . .310.5 -11.0 367.5 285.0 

Close Brothers Gr . . . .1070.0 -67.0 1563.0 1041.0 

CMC Markets . . . . . . . . .271.5 -4.8 283.3 219.0 

Hargreaves Lansdo . . .1192.0 -56.0 1525.0 1054.0 

Henderson Group . . . . .205.8 -5.8 312.0 195.0 

ICAP . . . . . . . . . . . . . . .406.0 -13.0 533.0 381.8 

IG Group Holdings . . . .784.5 -15.5 840.0 690.0 

Intermediate Capi . . . .485.2 -19.8 671.0 459.6 

International Per . . . . .284.7 -10.3 471.4 219.0 

Investec . . . . . . . . . . . .456.5 -9.9 621.0 402.7 

IP Group . . . . . . . . . . . . .141.9 -3.4 259.1 120.4 

John Laing Group . . . . .222.1 -3.3 230.2 187.0 

Jupiter Fund Mana . . . .354.5 -13.1 475.1 336.9 

Liontrust Asset M . . . . .265.5 -9.5 374.8 235.0 

LMS Capital . . . . . . . . . . .57.6 -0.6 80.0 54.8 

London Finance & . . . . .37.5 0.0 40.5 34.0 

London Stock Exch . . .2493.0 -30.0 2906.0 2123.0 

Man Group . . . . . . . . . . .114.8 -2.7 175.7 109.9 

OneSavings Bank . . . . .203.8 -11.2 405.6 176.2 

Paragon Group Of . . . .235.9 -9.7 444.8 234.6 

Provident Financi . . . .2338.0 -63.0 3634.0 2164.0 

PureTech Health . . . . . . .151.5 -1.5 170.5 120.0 

Rathbone Brothers . . .1694.0 -60.0 2359.0 1665.0 

Real Estate Credi . . . . . .155.8 -3.0 183.0 146.0 

Record . . . . . . . . . . . . . . .25.8 0.0 39.0 22.1 

S&U . . . . . . . . . . . . . . .2265.0 -15.0 2610.0 1992.5 

Sanne Group . . . . . . . . .386.3 -16.5 449.0 251.0 

Schroders . . . . . . . . . .2349.0 -73.0 3209.0 2049.0 

SVG Capital . . . . . . . . . .510.0 -10.5 550.0 436.0 

Tullett Prebon . . . . . . . .299.8 -3.7 414.8 275.0 

VPC Specialty Len . . . . . .82.3 -1.5 104.0 80.5 

Walker Crips Grou . . . . . .47.4 1.0 53.8 41.3 

BT Group . . . . . . . . . . . .402.5 -7.1 499.8 375.9 

TalkTalk Telecom . . . . .225.5 -9.0 391.0 189.5 

Telecom Plus . . . . . . . .1043.0 -30.0 1214.0 815.5 

Booker Group . . . . . . . .166.2 -6.6 190.0 149.4 

Greggs . . . . . . . . . . . . .964.0 -23.0 1355.0 884.0 

Morrison (Wm) Sup . . .188.0 -1.2 209.4 139.0 

Ocado Group . . . . . . . . .220.7 -3.3 470.8 208.1 

Sainsbury (J) . . . . . . . .230.9 -5.2 292.5 217.8 

SSP Group . . . . . . . . . . .282.4 -7.5 325.0 264.0 

Tesco . . . . . . . . . . . . . . .178.5 1.3 221.6 139.2 

UDG Healthcare Pu . . . .579.0 -8.5 625.0 460.3 

Associated Britis . . . . .2675.0 -57.0 3599.0 2350.0 

Cranswick . . . . . . . . . .2134.0 -66.0 2538.0 1536.0 

Dairy Crest Group . . . . .555.5 -15.5 697.0 504.5 

Greencore Group . . . . .308.4 -11.6 392.4 273.2 

Tate & Lyle . . . . . . . . . .682.0 -8.5 693.0 502.0 

Unilever . . . . . . . . . . .3596.5 -23.5 3649.0 2524.0 

Mondi . . . . . . . . . . . . .1398.0 -34.0 1611.0 1124.0 

Centrica . . . . . . . . . . . . .229.3 0.3 283.0 183.6 

National Grid . . . . . . . .1104.5 -1.0 1118.0 818.7 

Pennon Group . . . . . . .928.0 -13.5 945.5 713.0 

Severn Trent . . . . . . . .2448.0 19.0 2457.0 2024.0 

United Utilities . . . . . .1029.0 -1.0 1041.0 828.0 

RPC Group . . . . . . . . . . .779.5 -12.0 843.0 575.6 

Smith (DS) . . . . . . . . . .385.4 -10.5 421.0 331.2 

Smiths Group . . . . . . . .1145.0 -20.0 1206.0 863.5 

Smurfit Kappa Gro . . .1720.0 -42.0 2824.0 1584.0 

Vesuvius . . . . . . . . . . . .293.3 1.3 427.1 270.6 


Assura . . . . . . . . . . . . . . .55.5 -0.5 61.8 49.2 

Mediclinic Intern . . . . .1087.0 -8.0 1191.0 814.0 

NMC Health . . . . . . . . .1245.0 -57.0 1304.0 700.0 

Smith & Nephew . . . . .1271.0 -11.0 1293.0 1051.0 

Spire Healthcare . . . . . .321.8 -8.2 401.6 279.9 

Barratt Developme . . . .388.3 -26.7 662.5 354.4 

Bellway . . . . . . . . . . . .1849.0 -123.0 2848.0 1734.0 

Berkeley Group Ho . . .2485.0-169.0 3757.0 2341.0 

Bovis Homes Group . . .706.0 -56.5 1201.0 642.5 

Crest Nicholson H . . . . .362.9 -32.1 604.0 343.3 

McCarthy & Stone . . . . .161.5 -7.0 287.0 152.7 

Persimmon . . . . . . . . .1435.0-105.0 2219.0 1310.0 

Reckitt Benckiser . . . .7510.0 -35.0 7633.0 5510.0 

Redrow . . . . . . . . . . . . .312.2 -20.3 499.2 294.5 

Taylor Wimpey . . . . . . .130.5 -8.8 210.3 115.8 

Bodycote . . . . . . . . . . .540.0 11.0 687.5 494.0 

Hill & Smith Hold . . . . .877.0 -12.0 1000.0 643.5 

IMI . . . . . . . . . . . . . . . . .969.0 -21.5 1174.0 742.0 

Rotork . . . . . . . . . . . . . .215.3 -6.7 234.5 152.7 

Spirax-Sarco Engi . . . .3745.0 -30.0 3809.0 2725.0 

St James's Place . . . . . .792.5 -27.5 1023.0 716.0 

Standard Life . . . . . . . .286.5 -13.5 466.3 265.8 

4Imprint Group . . . . . .1290.0 -40.0 1377.0 1100.0 

Ascential . . . . . . . . . . . .243.8 -6.2 268.0 200.0 

Bloomsbury Publis . . . .160.0 0.0 174.0 144.3 

Centaur Media . . . . . . . .36.3 -5.5 85.5 36.3 

Creston . . . . . . . . . . . . . .86.5 1.0 162.0 85.3 

Entertainment One . . . .171.0 -4.0 326.3 130.0 

Euromoney Institu . . . .878.0 -52.0 1230.0 852.5 

Future . . . . . . . . . . . . . . . .9.2 0.2 11.5 7.9 

Haynes Publishing . . . .103.5 0.0 129.5 99.0 

Informa . . . . . . . . . . . . .719.0 -7.0 733.5 534.0 

ITE Group . . . . . . . . . . . .143.5 -0.3 184.8 128.8 

ITV . . . . . . . . . . . . . . . . . .175.1 -5.8 280.7 154.0 

Johnston Press . . . . . . . .16.3 -1.3 148.0 16.3 

Moneysupermarket. . .244.8 -30.2 377.1 243.0 

Pearson . . . . . . . . . . . .962.0 -13.0 1275.0 657.5 

Relx plc . . . . . . . . . . . .1390.0 -5.0 1408.0 1011.0 

Rightmove . . . . . . . . .3500.0-238.0 4250.0 3154.0 

Sky . . . . . . . . . . . . . . . .860.0 -13.0 1141.0 797.0 

STV Group . . . . . . . . . . .318.5 5.5 515.0 304.0 

Tarsus Group . . . . . . . . .267.0 7.3 267.5 202.0 

Trinity Mirror . . . . . . . . . .92.5 1.5 182.8 87.5 

UBM . . . . . . . . . . . . . . . .630.5 -19.5 655.0 477.9 

Weir Group . . . . . . . . .1435.0 -15.0 1726.0 787.5 

Evraz . . . . . . . . . . . . . . .142.2 0.1 147.6 56.2 

BBA Aviation . . . . . . . . .216.2 -8.3 226.1 150.2 

Clarkson . . . . . . . . . . .1850.0-355.0 2797.0 1696.0 

Royal Mail . . . . . . . . . . .490.0 -14.0 541.0 413.3 

Admiral Group . . . . . .2009.0 -40.0 2057.3 1385.0 

Beazley . . . . . . . . . . . . .366.2 -3.5 398.9 297.8 

Direct Line Insur . . . . . .348.3 -3.1 414.3 333.1 

esure Group . . . . . . . . .284.8 -3.3 290.6 223.7 

Hastings Group Ho . . . .176.5 1.4 187.9 149.8 

Hiscox Limited (D . . . .1023.0 -18.0 1061.0 855.5 

Jardine Lloyd Tho . . . . .922.0 -16.0 1063.0 778.0 

Lancashire Holdin . . . . .589.5 -6.5 759.0 518.5 

RSA Insurance Gro . . . .490.5 -8.4 526.5 373.2 

Aviva . . . . . . . . . . . . . . .391.0 -12.7 535.5 346.2 

JRP Group . . . . . . . . . . .109.0 -1.6 199.5 96.0 

Legal & General G . . . . .187.0 -4.2 276.3 165.0 

Old Mutual . . . . . . . . . . .198.7 -3.5 229.1 149.4 

Phoenix Group Hol . . . .794.5 -15.0 943.5 719.0 

Prudential . . . . . . . . . .1260.0 -23.0 1634.0 1087.0 

Wireless Group . . . . . . .310.0 0.0 310.3 135.4 

WPP . . . . . . . . . . . . . . .1601.0 -29.0 1678.0 1304.0 

Zoopla Property G . . . . .251.8 -12.9 337.8 199.3 

Acacia Mining . . . . . . . .483.6 19.7 484.8 156.6 

Anglo American . . . . . .764.0 6.0 918.2 221.1 

Antofagasta . . . . . . . . .480.6 11.0 684.5 346.1 

BHP Billiton . . . . . . . . . .952.2 12.2 1272.5 580.9 

Centamin (DI) . . . . . . . .146.3 4.6 146.7 53.6 

Fresnillo . . . . . . . . . . . .1895.0 135.0 1917.0 588.0 

Glencore . . . . . . . . . . . .162.8 6.8 255.8 68.6 

Hochschild Mining . . . .202.9 6.4 209.9 39.5 

Kaz Minerals . . . . . . . . .130.5 -1.5 203.1 72.7 

Polymetal Interna . . . .1079.0 20.0 1087.0 427.1 

Randgold Resource . .9160.0 385.0 9250.0 3625.0 

Rio Tinto . . . . . . . . . . .2356.0 11.0 2635.0 1577.5 

Vedanta Resources . . .445.2 12.5 603.5 205.8 

Inmarsat . . . . . . . . . . . .812.0 0.0 1148.0 689.5 

Vodafone Group . . . . . .225.9 -3.3 246.1 200.2 

BP . . . . . . . . . . . . . . . . .446.8 1.4 450.0 310.3 

Cairn Energy . . . . . . . . .216.0 -1.7 231.5 127.2 

Royal Dutch Shell . . . .2051.0 -25.0 2094.5 1266.0 

Royal Dutch Shell . . . .2065.5 -30.0 2117.0 1277.5 

Tullow Oil . . . . . . . . . . . .257.6 -5.3 350.0 118.2 

Amec Foster Wheel . . .487.2 -6.9 839.5 327.6 

Petrofac Ltd. . . . . . . . . .749.0 -25.5 982.0 663.0 

Wood Group (John) . . .683.5 -11.0 698.0 534.5 

Burberry Group . . . . . .1148.0 -18.0 1620.0 1041.0 

PZ Cussons . . . . . . . . . .324.9 -3.3 369.2 249.3 

Supergroup . . . . . . . . .1229.0 -11.0 1714.0 1184.0 

AstraZeneca . . . . . . . .4474.0 -28.5 4627.5 3774.0 

BTG . . . . . . . . . . . . . . . .699.5 -7.5 722.0 520.5 

Circassia Pharmac . . . . .98.2 -3.6 353.5 82.3 

Dechra Pharmaceut . .1169.0 -12.0 1228.0 912.0 

Genus . . . . . . . . . . . . .1646.0 -4.0 1735.3 1281.0 

GlaxoSmithKline . . . . .1601.0 1.0 1616.5 1237.5 

Hikma Pharmaceuti . .2489.0 -41.0 2546.0 1704.0 

Indivior . . . . . . . . . . . . .255.7 5.5 266.4 130.8 

Shire Plc . . . . . . . . . . . .4717.0 45.0 5730.0 3480.0 

Vectura Group . . . . . . . .160.5 -1.4 188.5 146.6 

Capital & Countie . . . . .284.8 -10.3 473.4 264.4 

CLS Holdings . . . . . . . .1358.0 -31.0 1970.0 1275.0 

Countryside Prope . . . .216.2 -6.8 278.5 173.2 

Countrywide . . . . . . . . .238.9 -6.2 570.0 237.7 

Daejan Holdings . . . . .4953.0 102.0 6595.0 4411.0 

F&C Commercial Pr . . . . .110.1 -2.9 148.7 102.1 

Grainger . . . . . . . . . . . .206.7 -6.4 254.0 193.1 

Kennedy Wilson Eu . . .930.0 -19.5 1220.0 901.5 

Safestore Holding . . . .359.0 -6.1 400.5 281.0 

Savills . . . . . . . . . . . . . .618.5 -1.5 986.5 582.0 

St. Modwen Proper . . .259.2 -12.8 493.6 240.9 

UK Commercial Pro . . . . .71.3 -2.0 91.0 65.0 

Unite Group . . . . . . . . .605.0 -12.0 702.5 560.0 

Big Yellow Group . . . . .734.5 -17.0 886.5 620.0 

British Land Comp . . . .565.0 -43.5 877.0 551.5 

Derwent London . . . . .2501.0 -98.0 3880.0 2257.0 

Great Portland Es . . . . .598.5 -18.0 889.5 536.0 

Hammerson . . . . . . . . .509.0 -23.5 685.5 468.6 

Hansteen Holdings . . . .100.5 -0.6 124.1 95.8 

Intu Properties . . . . . . .278.8 -12.7 353.2 255.7 

Land Securities G . . . . .980.0 -59.0 1352.0 910.0 

LondonMetric Prop . . . .150.0 -1.8 171.5 134.9 

Redefine Internat . . . . . .43.7 -1.2 57.5 40.5 

SEGRO . . . . . . . . . . . . . .405.9 -9.4 463.8 370.5 

Shaftesbury . . . . . . . . .862.0 -8.0 971.0 813.0 

Tritax Big Box Re . . . . . .128.3 -1.9 138.9 112.2 

Workspace Group . . . .652.0 -33.0 987.0 624.5 

Aveva Group . . . . . . . .1734.0 -41.0 2319.0 1237.0 

Computacenter . . . . . .709.0 -30.0 879.0 694.0 

Fidessa Group . . . . . . .2023.0 -15.0 2522.0 1758.0 

Micro Focus Inter . . . . .1614.0 -16.0 1641.0 1175.0 

NCC Group . . . . . . . . . . .263.3 -0.5 324.1 216.3 

Playtech . . . . . . . . . . . .798.5 -10.0 924.0 710.5 

Sage Group . . . . . . . . . .628.0 3.0 645.5 489.7 

Softcat . . . . . . . . . . . . . .319.0 -11.0 383.0 280.0 

Sophos Group . . . . . . . .211.0 -8.3 289.7 175.0 

Aggreko . . . . . . . . . . . .1248.0 -8.0 1488.0 770.0 

Ashtead Group . . . . . .1068.0 -11.0 1128.0 769.0 

Atkins (WS) . . . . . . . . .1306.0 -28.0 1656.0 1158.0 

Babcock Internati . . . .909.0 -19.5 1111.0 854.0 

Berendsen . . . . . . . . . .1207.0 -14.0 1246.8 969.0 

Bunzl . . . . . . . . . . . . . .2307.0 -10.0 2347.0 1671.0 

Capita . . . . . . . . . . . . . .933.5 -16.5 1326.0 848.5 

Carillion . . . . . . . . . . . . .237.0 -1.7 362.4 233.8 

DCC . . . . . . . . . . . . . . .6490.0-160.0 6695.0 4620.0 

Diploma . . . . . . . . . . . .800.0 -38.0 853.0 608.0 

Electrocomponents . . . .253.1 -8.1 290.4 172.5 

Essentra . . . . . . . . . . . . .551.5 -1.0 1029.0 467.7 

Experian . . . . . . . . . . .1430.0 -5.0 1456.0 1022.0 

G4S . . . . . . . . . . . . . . . . .178.4 -6.1 277.1 164.0 

Grafton Group Uni . . . . .461.5 -28.0 785.0 440.0 

Hays . . . . . . . . . . . . . . . .98.6 -1.4 172.8 95.0 

Homeserve . . . . . . . . . .505.0 -17.0 527.0 363.2 

Howden Joinery Gr . . . .365.1 -12.8 531.0 341.1 

Intertek Group . . . . . .3505.0 6.0 3553.0 2323.0 

Mitie Group . . . . . . . . . .238.8 -7.7 335.6 234.3 

Pagegroup . . . . . . . . . .290.6 -5.9 559.0 264.9 

PayPoint . . . . . . . . . . . .913.0 6.5 1091.0 720.0 

Paysafe Group . . . . . . . .381.0 -11.1 432.4 219.0 

Regus . . . . . . . . . . . . . .287.9 -5.2 354.6 249.1 

Rentokil Initial . . . . . . . .195.8 0.8 197.0 141.0 

Serco Group . . . . . . . . . .108.5 -6.1 133.4 76.8 

SIG . . . . . . . . . . . . . . . . .107.7 -6.6 209.5 105.3 

Travis Perkins . . . . . . .1394.0 -59.0 2260.0 1348.0 

Wolseley . . . . . . . . . . .3898.0 -76.0 4384.0 3230.0 

Worldpay Group (W . .266.6 -7.7 316.8 255.9 

ARM Holdings . . . . . . . .1115.0 -16.0 1135.0 848.5 

Laird . . . . . . . . . . . . . . . .313.9 -11.0 404.9 297.9 

British American . . . .4904.5 25.5 4948.0 3355.5 

Imperial Brands . . . . .4049.5 -13.0 4090.0 2991.0 

Carnival . . . . . . . . . . . .3376.0 -49.0 3907.0 2957.0 

Cineworld Group . . . . . .533.5 -20.0 597.0 457.0 

Compass Group . . . . . .1437.0 -2.0 1455.0 991.0 

Domino's Pizza Gr . . . .320.8 -18.3 366.3 254.7 

easyJet . . . . . . . . . . . . .1081.0 -11.0 1808.0 1020.0 

FirstGroup . . . . . . . . . . . .97.8 -3.7 119.8 80.8 

Go-Ahead Group . . . .1950.0 -28.0 2713.0 1790.0 

Greene King . . . . . . . . .782.5 -24.0 977.5 749.0 

InterContinental . . . .2796.0 -45.0 2939.8 2192.8 

International Con . . . . .375.0 -6.1 614.5 343.9 

Ladbrokes . . . . . . . . . . . .112.5 -2.9 137.3 93.4 

Marston's . . . . . . . . . . . .133.4 -3.7 176.0 130.0 

Merlin Entertainm . . . . .451.8 -2.3 466.8 365.9 

Millennium & Copt . . . .395.5 -17.8 576.5 366.4 

Mitchells & Butle . . . . . .224.5 -7.5 458.3 222.0 

National Express . . . . .301.5 -3.7 349.3 272.4 

Paddy Power Betfa . .7975.0-275.0 14275.0 7560.0 

Rank Group . . . . . . . . . .212.0 -8.2 295.5 199.7 

Restaurant Group . . . . .272.2 -8.2 723.5 267.0 

Stagecoach Group . . . .209.0 -4.1 403.9 197.5 

Thomas Cook Group . . . .61.9 -2.8 134.9 58.1 

TUI AG Reg Shs (D . . . . .895.5 -7.5 1271.0 844.5 

Wetherspoon (J.D. . . . .695.0 -12.0 795.5 609.0 

Whitbread . . . . . . . . .3503.0 -88.0 5275.0 3391.0 

William Hill . . . . . . . . . .252.4 -5.7 410.9 247.7 

Wizz Air Holdings . . . .1650.0 -43.0 2047.0 1415.0 

4D Pharma . . . . . . . . . .770.0 -10.0 1012.5 660.0 

Abcam . . . . . . . . . . . . . .763.0 0.5 772.5 499.0 

Advanced Medical . . . .196.8 0.3 200.8 139.8 

Amerisur Resource . . . . .27.0 0.5 38.8 17.3 

Arbuthnot Banking . .1406.5 4.0 1630.0 1265.0 

ASOS . . . . . . . . . . . . . .4089.0 -62.0 4166.0 2473.0 

Brooks Macdonald . . .1570.0 9.0 2040.0 1400.0 

Camellia . . . . . . . . . . .7981.0 -19.0 9800.0 7510.0 

Clinigen Group . . . . . . .599.5 -3.5 761.0 492.8 

Conviviality . . . . . . . . . .178.8 -1.5 238.0 151.5 

CVS Group . . . . . . . . . . .746.5 -2.0 840.0 599.5 

Dart Group . . . . . . . . . . .527.5 -12.5 676.5 403.3 

EMIS Group . . . . . . . . . .923.0 14.5 1155.0 841.5 

Fevertree Drinks . . . . . .698.0 -31.0 738.0 280.0 

First Derivatives . . . . .1675.0 -115.0 2113.0 1312.5 

Gamma Communicati .390.0 5.0 463.0 268.5 

GB Group . . . . . . . . . . . .274.3 -0.5 321.0 209.0 

Gemfields . . . . . . . . . . . .35.8 -0.3 67.3 35.3 

Gooch & Housego . . . . .872.5 -13.5 929.0 816.5 

GW Pharmaceutical . . .594.0 6.5 693.0 211.5 

Iomart Group . . . . . . . .263.0 0.0 307.5 214.0 

James Halstead . . . . . .409.0 -1.0 520.0 385.5 

Johnson Service G . . . . .88.8 -1.0 99.5 84.0 

M&C Saatchi . . . . . . . . .283.0 -9.3 370.0 282.8 

M. P. Evans Group . . . . .407.5 2.4 445.9 345.5 

Majestic Wine . . . . . . . .387.8 -1.0 477.8 296.0 

Mulberry Group . . . . .1050.0 0.0 1075.0 883.8 

Nichols . . . . . . . . . . . .1444.0 40.0 1492.0 1119.0 

Numis Corporation . . . .198.0 3.8 273.5 189.8 

Pan African Resou . . . . .20.3 2.3 20.3 6.3 

Pantheon Resource . . . .141.3 -5.5 184.8 17.6 

Patisserie Holdin . . . . .288.0 -3.0 450.0 272.3 

Pinewood Group . . . . . .532.5 -12.5 580.0 419.9 

Polar Capital Hol . . . . . .312.5 -12.5 460.0 270.0 

Purplebricks Grou . . . . .137.5 0.0 175.0 73.0 

Redcentric . . . . . . . . . . .164.5 -2.3 203.3 158.0 

Redde . . . . . . . . . . . . . .160.8 -1.5 210.3 137.5 

Renew Holdings . . . . . .344.0 9.0 410.0 295.3 

RWS Holdings . . . . . . . .233.0 13.8 245.0 124.8 

Scapa Group . . . . . . . . .268.0 -2.8 284.5 179.3 

Secure Trust Bank . . . .2015.0 16.0 3385.0 2001.0 

Sirius Minerals . . . . . . . . .19.8 0.3 23.0 10.8 

Smart Metering Sy . . . .410.8 -3.3 449.0 305.5 

Staffline Group . . . . . .800.0 39.0 1623.0 750.0 

Telford Homes . . . . . . .289.8 -7.0 446.5 262.0 

Telit Communicati . . . .238.5 -1.8 356.0 178.3 

Thorpe (F.W.) . . . . . . . .224.0 0.0 244.5 176.5 

Vertu Motors . . . . . . . . . .41.8 -0.3 78.5 40.8 

Watkin Jones . . . . . . . .104.8 1.8 115.0 100.3 

Young & Co's Brew . . . .1219.0 0.0 1260.0 1075.0 

Young & Co's Brew . . . .925.0 17.5 950.0 792.5 

Fresnillo . . . . . . . . . . . . . . . . . .1895.0 7.7 

Randgold Resources . . . . . . . .9160.0 4.4 

Glencore . . . . . . . . . . . . . . . . . . .162.8 4.4 

Acacia Mining . . . . . . . . . . . . . . .483.6 4.3 

AO World . . . . . . . . . . . . . . . . . . .147.3 3.4 

Hochschild Mining . . . . . . . . . . .202.9 3.3 

Centamin (DI) . . . . . . . . . . . . . . .146.3 3.3 

Vedanta Resources . . . . . . . . . .445.2 2.9 

Antofagasta . . . . . . . . . . . . . . . .480.6 2.3 

Indivior . . . . . . . . . . . . . . . . . . . .255.7 2.2 

Clarkson . . . . . . . . . . . . . . . . . .1850.0 -16.1 

Moneysupermarket.c . . . . . . . .244.8 -11.0 

Crest Nicholson Ho . . . . . . . . . . .362.9 -8.1 

Bovis Homes Group . . . . . . . . . .706.0 -7.4 

British Land Compa . . . . . . . . . .565.0 -7.2 

Shawbrook Group . . . . . . . . . . . .161.4 -7.0 

Persimmon . . . . . . . . . . . . . . . .1435.0 -6.8 

Barratt Developmen . . . . . . . . .388.3 -6.4 

Rightmove . . . . . . . . . . . . . . . .3500.0 -6.4 

Berkeley Group Hol . . . . . . . . .2485.0 -6.4 

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AIM 50 

Tsy 8.000 15 . . . . . . .106.51 -0.07 113.8 106.5 

Tsy 4.750 15 . . . . . . .102.64 -0.04 106.8 102.6 

Tsy 4.000 16 . . . . . .105.79 -0.03 108.3 105.7 

Tsy 2.500 16 . . . . . . .327.52 -0.01 339.1 327.3 

Tsy 1.250 17 . . . . . . . .107.61 0.03 110.9 107.3 

Tsy 8.750 17 . . . . . . . .121.21 0.05 126.3 121.1 

Tsy 5.000 18 . . . . . . .113.51 0.10 114.4 111.7 

Tsy 3.750 19 . . . . . . .113.00 0.20 113.0 108.0 

Tsy 4.500 19 . . . . . . .115.07 0.16 115.1 111.2 

Tsy 4.750 20 . . . . . .119.04 0.23 119.0 113.5 

Tsy 2.500 20 . . . . . .366.72 0.08 370.4 359.4 

Tsy 8.000 21 . . . . . .142.92 0.32 143.0 135.7 

Tsy 4.000 22 . . . . . .119.85 0.45 119.8 110.4 

Tsy 1.875 22 . . . . . . .124.78 0.18 125.8 119.1 

Tsy 2.500 24 . . . . . .350.74 0.27 353.6 322.5 

Tsy 5.000 25 . . . . . .134.70 0.68 134.8 119.4 

Tsy 4.250 27 . . . . . . .131.90 0.84 132.0 112.1 

Tsy 1.250 27 . . . . . . .130.83 0.42 131.4 116.0 

Tsy 6.000 28 . . . . . .155.76 0.85 155.7 132.9 

Tsy 4.750 30 . . . . . . .142.51 0.89 142.5 118.3 

Tsy 4.125 30 . . . . . . .347.31 0.33 350.7 304.4 

Tsy 4.250 32 . . . . . .136.85 0.98 136.9 111.7 

Tsy 1.250 32 . . . . . . .143.94 0.53 144.8 120.7 

Tsy 4.250 36 . . . . . .140.37 1.13 140.4 111.6 

Tsy 4.750 38 . . . . . .153.30 1.21 153.2 120.4 

Tsy 0.625 40 . . . . . .144.56 0.66 146.5 112.2 

Tsy 4.500 42 . . . . . . .153.16 1.33 153.1 117.1 

Tsy 3.500 45 . . . . . . .132.31 1.50 132.2 100.6 

Tsy 4.250 46 . . . . . .152.26 1.50 152.3 113.3 

Tsy 4.025 49 . . . . . . .156.13 1.64 156.4 114.4 

Tsy 4.000 99 . . . . .100.00 0.00 101.8 94.9 

WORLD INDICES 

FTSE 100 . . . . . . . . . . . . . . . . . . . . . 6522.26 -55.57 -0.84 

FTSE 250. . . . . . . . . . . . . . . . . . . . . 16116.70 -348.79 -2.12 

FTSE All-Share . . . . . . . . . . . . . . . . 3518.96 -36.49 -1.03 

FTSE AIM All-Share . . . . . . . . . . . . . . 713.86 0.38 0.05 

S&P 500 . . . . . . . . . . . . . . . . . . . . . 2102.95 4.09 0.19 

Dow Jones I.A. . . . . . . . . . . . . . . . 17949.37 19.38 0.11 

Nasdaq Composite . . . . . . . . . . . . 4862.57 19.90 0.41 

Xetra DAX . . . . . . . . . . . . . . . . . . . 9709.09 -67.03 -0.69 

CAC 40 . . . . . . . . . . . . . . . . . . . . . . 4234.86 -39.10 -0.91 

Swiss Market Index . . . . . . . . . . . . 8056.71 -28.50 -0.35 

ISEQ Overall Index. . . . . . . . . . . . . 5669.76 -80.20 -1.39 

FTSEurofirst 300. . . . . . . . . . . . . . . 1305.96 -6.90 -0.53 

Hang Seng . . . . . . . . . . . . . . . . . . 21059.20 264.83 1.27 

Shanghai Composite . . . . . . . . . . 2988.60 56.13 1.91 

Straits Times . . . . . . . . . . . . . . . . . 2870.56 24.19 0.85 

ASX All Ordinaries . . . . . . . . . . . . . 5365.20 38.20 0.72 

Price Chg %chg Price Chg %chg Price Chg %chg Price Chg %chg 

LIFE INSURANCE 

MOBILE TELECOMS 

INDUSTRIAL ENGINEERING 

MEDIA 

MINING 

SOFTWARE & COMPUTER SERV. 

HHOLD GDS & HOME CONSTR. 

NON LIFE INSURANCE 

INDUSTRIAL TRANSPORTATION 

FTSE 100 

6522.26 

55.57 

FTSE 250 

16116.70 

348.79 

FTSE ALL SHARE 

3518.96 

36.49 

DOW JONES 

17949.37 

HOLIDAY 

NASDAQ 

4862.57 

HOLIDAY 

S&P 500 

2102.95 

HOLIDAY 

BATS UK 100 

11058.30 

92.17 

BATS UK 250 

14653.03 

298.42 

CONSTRUCTION & MATERIALS 

GENERAL RETAILERS 

INDUSTRIAL METALS & MINING 

*US VALUES ARE FROM FRIDAY, JULY 1 

Rise | Shine 

CITY A.M. MORNING UPDATE 

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19 


NEWS 

CITYAM.COM

20 OPINION TUESDAY 5 JULY 2016 

CITYAM.COM 

FORUM 

EDITED BY TOM WELSH 

Let’s embrace the new opportunities 

for prosperity Brexit has opened up 

ALTHOUGH we were on 

opposing sides of the Brexit 

debate, one the employment 

minister and the other an 

asset manager in London, 

there is one thing we are in absolute 

agreement on: Britain has opportunities 

ahead and there is a job to do to 

ensure the country becomes as great 

as it can be. 

We have no time to waste imagining 

what might have been. It’s time to get 

on and seize the day. 

We are not merely talking up Britain 

and reminding the world that the 

country is open for business: the UK 

has one of the most highly-skilled 

workforces in the world, opportunities 

for phenomenal growth from infrastructure 

to life sciences, the best 

research facilities, the greatest global 

brands, world-class business centres, 

and is one of the easiest places in the 

world to do business. We are highlighting 

the new opportunities that may be 

overlooked in the post-referendum 

vacuum. 

First, if you’re an exporter or have the 

potential to export, you have a once-ina-lifetime 

opportunity to take advantage 

of an oversold pound to boost 

your sales globally. For Britain, a trading 

nation, a boost in our exports will 

help balance our trade deficit but 

more importantly will create new 

British exporters and increase the sales 

and profitability of existing ones. 

Importers will have higher costs 

imposed on them for a time, and it 

would be glib to say there will be productivity 

gains as a result, but that is 

the opportunity. 

Of course we have to be mindful of 

employees and businesses concerned 

about uncertainty, but the best thing 

politicians can do now is to communicate 

a clear vision and plan of action, 

LONDON is, and always will be, 

open for business. Once, we 

were the world’s largest port – 

from which ships traded 

around the globe. Over the 

last century, we grew to become the 

world’s most competitive financial 

centre. And now, as we face the challenges 

thrown up by the result of the 

referendum on our EU membership, 

we must do all we can to ensure that, 

whatever may transpire, London 

remains the best place in the world to 

do business. 

Of course, the City’s reaction to the 

result of the referendum has been a 

negative one. Like the vast majority of 

my fellow entrepreneurs and 

business owners, it was a result that I 

did not want and one which I fought 

against. 

Now, however, we have to face up to 

reality. I have been offered the opportunity 

by our new mayor Sadiq Khan 

to play my part in ensuring that, 

come what may, we continue to thrive 

as a city. In my new role as deputy 

mayor for business, I am proud to 

have the chance to serve London’s 

and the best thing businesses can do is 

to act on opportunities that have 

opened up in this new environment. 

The support that was available from 

government agencies before the vote 

still exists – please use it, whether as a 

member of the workforce or a business 

person. 

Brexit must also be used to establish 

global trading connections with fastgrowing 

markets to enhance our 

future prosperity. More than that, our 

liberal free trading instincts should see 

us become a confident and assertive 

proponent of global free trade in international 

fora such as the World Trade 

Organisation. We are already seeing 

our friends in the Anglosphere 

sending us positive messages on future 

trade deals, and it is clear that the US 

wants us at the front of the queue 

rather than the back. Leaving the EU 

presents opportunities to succeed in a 

globalising economy, and efforts to 

beef up our trade negotiation capability 

must be made to enable us to capitalise 

on them. 

As a beacon of global free trade and 

enterprise, we should go into our negotiations 

with the EU with confidence 

that we can achieve fair terms of withdrawal. 

Securing a continuation of tariff-free 

trade between the countries of 

the EU and the UK should be the 

utmost priority for negotiators in 

Whitehall, Brussels and other capital 

cities across Europe. As the German 

equivalent of the CBI has made clear, 

trade is mutually beneficial and 

resentment over the UK’s withdrawal 

from the EU should not stand in the 

way of doing what is best for business 

and consumers. 

The stock market falls will give those 

fortunate enough to be part of our 

shareholding democracy a chance to 

buy great British companies at a huge 

Priti 

Patel 

& 

Alpesh 

Patel 

We are already 

seeing our friends in 

the Anglosphere 

sending us positive 

messages on future 

trade deals, and it is 

clear that the US 

wants us at the front 

of the queue rather 

than the back 

discount. There is no way our cash-rich 

international banks are suddenly 

worth 40 per cent less than they were a 

week ago. Time and again, patience 

favours the brave. Panic usually means 

overselling and an opportunity for 

those on the ball. 

At the other end of the economic 

scale, if you’re disillusioned, fed up 

with limited opportunities, and yours 

was a protest vote, don’t forget all the 

government programmes for retraining 

and reskilling. Use them. The New 

Enterprise Allowance has seen 85,000 

business community, 15 years after I 

arrived at Heathrow from India with 

£200 in my pocket and instantly felt 

welcome in the city I now call home. 

Sadiq and I are clear that, as the 

driving force of the UK’s economy, 

London must have a seat at the decision-making 

table for the process of 

negotiation with the EU. 

Within that discussion, first and 

foremost, we will seek to protect our 

access to the Single Market and passporting, 

which have long been central 

to London’s appeal as a base for financial 

and professional services. Sadiq 

will be pressing the new Prime 

Minister, whoever he or she may be, 

and the EU to reach agreement on 

this key principle as soon as possible. 

While we go about that process, 

writing as a businessman to other 

businesspeople, I ask for your support 

and confidence. Working together, 

we can keep London open for business, 

and keep it leading in the world. 

This is no time for knee-jerk 

decisions, and I know that our international 

businesses, and their 

leaders, will share in my aim of keeping 

the ship steady as we enter choppy 

economic waters. 

At the same time, we must not lose 

sight of the rich economic opportunities 

that lie ahead. Today, and increasingly 

in the future, our tech sector is a 

beacon. We are a leading player in fintech 

– and through the platforms and 

opportunities that this sector, and 

other parts of the tech landscape, are 

creating, London’s businesses will 

find new ways to trade with the 

world. 

Just yesterday evening, Stripe, a 

$5bn Silicon Valley startup, opened 

its new flagship office in our own 

Silicon Roundabout – a company 

offering a new solution for British 

firms to access a global marketplace, 

businesses launched by jobseekers 

since it was unveiled in 2011, for 

instance. And in the future, without 

EU prohibition on state subsidies, the 

government will be able to support 

businesses suffering from short-term 

decline with financial assistance. 

In the wake of the vote, we are redoubling 

our efforts to bring more global 

investment into all parts of the United 

Kingdom by getting the message out 

around the world about the new 

opportunities emerging in Britain. If 

you’re an overseas investor, you’ve got 

a once-in-a-lifetime chance to invest in 

Britain at bargain prices because of the 

exchange rate. By investing here, you 

also tap into a hugely talented workforce, 

some incredible intellectual 

property, and facilities for world-class 

R&D. 

Our vision is to make doing business 

in Britain easier than in any other 

country, creating more growth and 

more jobs. All sides of the debate know 

this is a worthy goal. And if you want 

to see this at work in its early stages, 

look at the positive comments in the 

Indian press about the prospects for a 

future trade deal with Britain outside 

the EU. India is one of the largest 

investors in Britain, and deepening 

our ties will hugely benefit both of our 

economies. 

We need a calm, stable, open and balanced 

economy in which all sections 

of society share in our prosperity. To 

achieve this, both politicians and business 

must move forward with a common 

vision to make the most of the 

opportunities that are opening up for 

Britain outside the EU. 

£ Priti Patel MP is minister of state for 

employment. Alpesh Patel is chief 

executive of Praefinium Partners, a UKbased 

global asset manager. 

London needs a seat at the decision-making 

table to make Brexit work for the capital 

Rajesh 

Agrawal 

looking optimistically forward. This 

is just one example of the opportunities 

that exist, and will always exist, 

for entrepreneurs, homegrown or 

international, in this great city. 

Further opportunity lies in the 

devolution of fiscal and other powers 

to London. With such powers, we can 

do more to protect our economy from 

the uncertainty that lies ahead, to 

ensure a greater supply of homegrown 

talent with the skills that our 

businesses need, and to deliver the 

infrastructure that will boost our 

competitiveness. 

Above all, as deputy mayor for business 

I will be a voice for entrepreneurs 

and for business leaders in City 

Hall. Working together with Sadiq, 

who will be the most pro-business 

mayor London has ever had, we will 

ensure that the concerns and priorities 

of our great business sectors are 

at the forefront of decision-making 

and planning, and that London 

remains open for business. 

£ Rajesh Agrawal is London’s deputy 

mayor for business. 

DEBATE 

Q: With Nigel 

Farage off the 

scene, will it be 

easier to reach a 

compromise with 

the EU on free 

movement? 

Rachel 

Cunliffe 

YES 

Nigel Farage posed in front of a Brexit 

poster featuring a road of migrants with 

the caption “Breaking Point”, in what 

has become an iconic image of the 

campaign. He has blamed immigrants 

for everything from the strain on the 

NHS to traffic on the M4. And after his 

stunt in the European Parliament last 

week, where he insulted and belittled 

MEPs, no one in the European Union 

wants to work with him. With Farage 

away from the table, the new Prime 

Minister can get on with negotiating a 

deal on free movement that works for 

the majority of the British people, not 

just those who shout the loudest. That 

means security for the EU migrants 

already here, and for the 1.2m British 

nationals living elsewhere in the EU. The 

government will have more freedom to 

compromise on immigration in 

exchange for access to the Single 

Market, prioritising the economy over 

alarmist fears about border control. Let’s 

just hope that Farage sticks to his 

promise to stay away. 

£ Rachel Cunliffe is deputy editor of 

CapX. 

Tim 

Bale 

NO 

Nigel Farage has a fair claim to being the 

country’s most influential politician of 

the last decade. The pressure his party 

exerted on the Tories forced David 

Cameron into a referendum which he 

never wanted but now looks set to 

change the course of the UK’s economic, 

political, social and diplomatic history. 

Not bad for someone who never even 

managed to get elected to parliament. 

But his resignation as leader won’t make 

it any easier for whoever takes over as 

PM to persuade EU member states that 

we should retain full access to their 

market without granting their citizens 

access to ours. They don’t owe us a 

living, so why allow us to free ride? 

Meanwhile, back at home, does anyone 

seriously think Farage will happily fade 

into obscurity? He’s a populist attentionseeker 

who’ll doubtless carry on 

claiming we can have our cake and eat it. 

And anyway, his successor will be just as 

determined to hold the government’s 

feet to the fire on migration. 

£ Tim Bale is professor of politics at 

Queen Mary, University of London.

CITYAM.COM 


OPINION 

21 

WE WANT TO HEAR YOUR VIEWS › E:theforum@cityam.com COMMENT AT:cityam.com/forum 

LETTERS 

TO THE EDITOR 

The Brexit truth 

rarely mentioned 

[Re: Stop dithering: We must leave the EU 

asap, yesterday] 

The article you published by Lord Owen and 

Lord Lawson was clearly not written by 

anyone with hands-on professional banking 

experience. I would merely underline the 

points made repeatedly by Mark Boleat in 

your paper that “passporting” into the Single 

Market is essential for the City’s huge financial 

services sector. This is a far more important 

aspect of the Single Market than questions of 

tariffs and was not mentioned at all in the 

rather simplistic analysis. It is for lemmings 

rather than senior retired politicians to take 

up the slogan “stop dithering!” 

Nicholas Maclean 

Lord Lawson and Lord Owen propose a route 

to Brexit that would lead to the greatest 

chaos. They are correct that remaining in the 

Single Market will limit our ability to embrace 

the upsides of Brexit. But the short-term 

shock to the economy would be catastrophic. 

Name withheld 

Convenient excuse 

[Re: George Osborne ditches plan to run a 

budget surplus] 

Now we know why David Cameron and 

George Osborne fought such a pathetic 

Remain campaign: Osborne must have 

known for months that there soon must come 

his embarrassing admission that he could not 

deliver on his personal promise to eliminate 

the budget deficit. But Brexit has now meant 

that he can put the blame for this failure on to 

someone else. 

John F Davenport 

BEST OF 

TWITTER 

If Theresa May wins, all 

senior Leave campaigners 

will be further from actual 

political power than before 

they won the referendum 

vote. Odd. 

@DavidAllenGreen 

Lawyers try to block Brexit is 

obviously politically toxic to 

pro-EU cause. Forms part of 

a broader lack of Remain 

self-reflection on why 

defeated. 

@sundersays 

Always said if you didn’t 

want Farage as a political 

leader, vote leave. 

@MrRBourne 

Without Nigel Farage, there 

would not have been an EU 

referendum. If he had been 

the Leave campaign’s face it 

would have definitely lost. 

@montie 

PMI shows UK construction 

output falling at fastest rate 

since June 2009. 

@WilliamsonChris 

Schaueble: “We have to stop 

playing the usual European 

and Brussels games. EU is 

facing an acid test, perhaps 

the greatest in its history.” 

@NinaDSchick 

Fintech can thrive outside the EU – 

if we remain in the Single Market 

THE result of Britain’s EU referendum 

shocked many in the 

business community. It has 

left the country with a caretaker 

government, an opposition 

in disarray, and no clear roadmap 

for a post-Brexit UK. 

In March, we surveyed our startup 

members on Brexit and found that 80 

per cent supported Remain. This was 

consistent with many surveys from the 

business community and the position 

taken by both the City of London and 

the new London mayor. But 52 per 

cent of people in the UK voted to leave 

the EU. We must respect this and move 

forward. It is now time to start filling 

the vacuum left by our unpreparedness 

for the outcome of the vote, and 

start the work of securing our new 

future in Europe. 

Innovate Finance spent last week listening 

to the government, our community, 

and the global fintech 

ecosystem. We also surveyed our 250 

fintech startup members and financial 

institutions to discover their priorities 

for fintech in a post-Brexit UK. 

The number one priority is clear: we 

must retain access to the Single 

Market, financial services “passporting”, 

and to fintech talent. On top of 

this, we must do everything we can to 

continue to attract investment and liquidity, 

the lifeblood of a startup, especially 

in its earlier stages. 

London is the undisputed number 

one financial services centre globally, 

and the number one fintech hub in 

the world. With tenacious and energetic 

representation and negotiations, 

we can keep this position, and that is 

our message to government and the 

global community. 

Not all of our fintech membership 

Lawrence 

Wintermeyer 

will be impacted by Brexit. Domestic 

UK plays like peer-to-peer lending, 

crowdfunding, and challenger banks 

are largely unaffected, and there will 

be little impact on global money transfer 

and domestic personal financial 

services fintech firms. 

But the impact becomes more apparent 

as firms grow their businesses outside 

of the UK into Europe to access 

the much larger Single Market of over 

500m consumers, businesses, and capital 

markets. Fifty per cent of our 

member firms are currently authorised 

to “passport” into Europe. 

While the fintech community appreciates 

a new government will need to 

interpret the vote of the people into a 

Brexit roadmap, the probability of any 

government taking the UK out of the 

Single Market appears lower than 

higher at this juncture. 

So let us begin the Brexit negotiations 

on a positive note. Given our 

almost 50/50 goods export and import 

trade relationship with Europe, and 

over 40 years of financial services integration 

and harmonisation, it is in our 

mutual interests to expedite this to 

everyone’s benefit. 

Though investment slows in times of 

uncertainty, the signs of recovery in 

stock markets and the business community’s 

unity around not relinquishing 

access to the Single Market is 

:@cityam 

starting to rebuild lost confidence. 

Venture investors are committed to 

UK fintech and will continue to support 

their portfolio companies while 

assessing the post-Brexit landscape, as 

will corporate venture capital funds 

and financial institutions, all of which 

have invested heavily in fintech over 

the last year. 

But in fintech, both capital and talent 

are global and are the two key 

ingredients of success. Over 30 per 

cent of our founders and chief executives 

are not from the UK. Britain 

must continue to secure access to 

global STEM talent for fintech’s continued 

success. 

Financial institutions are keeping a 

cautious eye on developments but no 

one is moving anywhere quickly. 

While European banks are more sanguine 

than their UK counterparts, 

most top tier UK banks have global 

networks and will not react hastily 

one way or another. This is even more 

true for US top tier banks, as they will 

“passport” in any European country 

they chose to. Fintech has become an 

enabler for financial institutions seeking 

to transform their customer 

propositions and heritage 

technologies through digital innovation 

– and this is not going to stop. 

Ultimately, Britain’s fintech sector 

must remember its inherent 

strengths. Thanks to the FCA, Project 

Innovate, the Regulatory Sandbox, and 

the upcoming Industry Sandbox blueprint, 

the UK is still the number one 

fintech hub on the planet to accelerate 

your route to market in the UK and in 

Europe. 

£ Lawrence Wintermeyer is chief 

executive of Innovate Finance. 

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22 FEATURE TUESDAY 5 JULY 2016 

CITYAM.COM 

TRADING 

BREXIT 

FEAR 

DRIVES 

NEGATIVE 

YIELD 

POISON 

Annabelle 

Williams 

Something 

strange is afoot in 

the bond market, 

and it’s going to 

hurt banks badly 

THE IDEA of loaning a government 

money for no return is 

absurd. But that’s what’s 

happening in five European 

countries, and at some 

multi-nationals. 

Investors have been loaning them 

money for next to nothing, and in 

some cases even paying for the privilege 

of buying up the debt. 

So-called negative yields have been 

creeping across Europe for years now. 

There is now a staggering $11.7 trillion 

of bonds with negative yields – a 

figure that has already surged 12 per 

cent in the brief post-Brexit period, 

according to Fitch Ratings. 

The growth of investments which 

people pay to own is “one of the 

biggest conundrums facing 

investors”, says Russ Mould, investment 

director at AJ Bell. 

BREXIT RISK 

Last week there was a fresh 

landmark, when a UK government 

bond, or gilt, maturing in 2018 

traded at minus 0.003 per cent, negative 

for the first time. 

It came after ratings agencies downgraded 

the status of UK government 

debt. Bond yields move inversely to 

prices, so pushing yields lower 

reflects a sense of fear about the outlook. 

Yields on US government debt 

also hit a record low last week, 

reportedly driven by panic buying 

from Europe. 

The UK’s negative moment followed 

a hint from governor Mark Carney 

that he may begin stimulus measures, 

to ease the pressure on the 

economy while the ramifications of 

the referendum play out. 

“The irony of the Brexit vote is that 

since then [we] have become more 

like Europe, not less,” says Adrian 

Hull of Kames Capital. 

It was a stark reminder of the 

uncertainties ahead for the UK, and 

how investors have been clamouring 

for safer places to park their cash. 

“Why would people effectively pay 

to lend money to a government, 

when in the normal world of 

finance, you get paid with interest if 

you lend? [It’s because] investors are 

more interested in getting their 

money back than the return they get 

on it,” says Simon Smith, chief economist 

at FxPro. 

With developed economy stock 

markets hovering around record 

highs and asset bubbles appearing in 

everything from property to technology, 

bonds seem like a decent alternative, 

even if they pay out peanuts. 

“People are being forced into this,” 

says Peter Toogood, investment director 

of City Financial. 

The trend is also being driven by the 

European Central Bank, which has 

been buying up €80bn a month of government 

debt from across the 

Eurozone. It’s ostensibly a way to support 

regional governments. 

Bonds from the “safest” countries are 

yielding below zero, and while a lot of 

The irony of the 

Brexit vote is that 

we have become 

more like Europe, 

not less 

hubbub has been made of the negative 

levels, it could just be the start. “The 

ECB has said it will buy corporate 

bonds up to yields of minus 0.40. So 

when we all thought zero was the 

floor, they have changed that and 

minus 0.40 is the new zero,” says Hull. 

BANK TROUBLE 

The problem is the distorting effect 

this has on everything else. Investors 

keep a close eye on future yields, and 

what they show about market expectations. 

Low bond yields stretching out 

into the future – on a graph known as 

the yield curve – tend to portend a 

period of slow growth, and at these levels, 

they’re forecasting recession. 

“There is no way this can ever be considered 

a positive,” says Toogood, 

adding the yield curve shows recession 

is on the cards in the US at least. 

“It has been the best economic indicator 

and it has never, ever, been 

wrong.” 

SEVEN DIFFERENT COUNTRIES WITH NEGATIVE YIELDING DEBT 

Switzerland 

Germany 

Japan 

France 

Italy 

UK 

USA 

1-year 3-year 5-year 7-year 10-year 20-year 30-year 

-0.84% -1.11% -1.01% -0.85% -0.58% -0.24% -0.07% 

-0.62% -0.63% -0.56% -0.44% -0.13% 0.21% 0.38% 

-0.33% -0.33% -0.35% -0.35% -0.25% 0.05% 0.11% 

-0.54% -0.52% -0.36% -0.21% 0.16% 0.74% 

0.91% 

-0.22% -0.02% 0.32% 0.69% 0.13% 1.87% 2.26% 

0.22% 0.14% 0.34% 0.59% 0.81% 1.49% 1.62% 

0.09% 0.67% 0.96% 1.23% 1.42% n/a 2.21% 

Banks are also likely to find things 

tougher. “The real implications are for 

the banks and the rest of the economy. 

Banks make money by borrowing 

short and lending long,” says Hull. The 

lower the interest rates on loans, the 

less chance banks have of profit making. 

PENSION IMPACT 

Negative yields also put pension funds 

under pressure. Bonds are “in theory a 

source of steady coupons in return 

for taking limited risk”, says Bell, and 

have been favoured by pension funds, 

which need lower-risk investments. 

But if a great swathe of bonds 

aren’t paying anything, how will pension 

funds make sufficient returns 

on suitably risky investments, to 

match their members’ needs? In 

some cases, negative yielding bonds 

can give a positive real return, but 

not always. 

“This will have a massive and negative 

effect on most pension schemes’ 

funding plans,” says Warren Firth, 

actuarial director at Broadstone. 

Companies with defined benefit 

schemes are also going to be under 

the cosh as they work out how to 

match investment returns with liabilities. 

“It’s going to be a drag on growth as 

companies have to allocate resources 

to pension funds rather than into 

their own businesses,” says Hull. 

“There’s no doubt these low yields 

are a real problem for pension liabilities. 

It will put pressure on any company 

that has a defined benefit 

scheme. They’re under-funded and 

this will exacerbate that.” 

Fundamentally, the role of bonds as 

an investment is changing and it 

warrants a reappraisal by investors. 

£ Annabelle Williams is deputy money 

editor at City A.M.

CITYAM.COM 


FEATURE 

23 

Europe should “consciously uncouple” from Britain 

SITTING in Gatwick’s departure 

terminal on the afternoon of 

Friday 24 June felt a bit like leaving 

a car crash before the ambulance 

arrived. 

Hours earlier I was standing in front of 

a plunging sterling-dollar chart reporting 

live that Sunderland voted Leave by 

a much wider margin than expected. 

The journalist in me was anxious to stay 

in the UK and witness the reaction on 

the street, but before the morning rush 

hour set in, I was packing my bags for a 

weeklong trip across the continent. 

First stop Italy. The reaction was 

muted, barring some sensational newspaper 

headlines. A taxi driver in Rome 

said: “For me, it is good news. For too 

long we’ve been giving too much money 

to the EU with nothing in return.” But 

when asked whether Italy would be 

next through the door, he insisted “no 

way”. A museum guide shared his sentiment. 

“We are fed up with the EU, but 

for Italy there is no going back.” 

The most passionate replies were 

heard in France. “It’s funny for us,” said 

a hotel receptionist in the southern city 

of Aix-en-Provence. “Nobody thought it 

would happen. But if they want to leave, 

they should hurry up.” A French taxi 

driver told me: “I’m very happy. 

Politicians have been wasting our 

money. They don’t have proper jobs. I’d 

CNBC 

COMMENT 

Nancy 

Hungerford 

rather see a businessman like Elon 

Musk in power.” But when asked if 

France would ever leave the EU, the driver 

laughed off the suggestion. 

The overriding message: we are proud 

to be European but we are fed up with 

our leaders. The bemusement, at times 

admiration, expressed for the British 

rebellion was a far cry from the outrage 

voiced in the official quarters in 

Brussels. 

On the sidelines of the EU leaders 

meeting, I asked European Parliament 

president Martin Schulz whether 

Brussels shared any blame for not 

taking the Brexit risk seriously. He 

stared me down as if I had been planted 

by Nigel Farage. My question came in 

response to the shock I felt at the lack of 

humility on display. At a time when 

Eurosceptic fever is running high, I was 

stunned by an unwillingness of Messrs 

Schulz, Juncker and Tusk to take ownership 

of the failings of their institutions. 

European politicians like Martin Schulz aren’t willing to take responsibility for Brexit 

Even in the nastiest divorce, it’s a normal 

part of the healing process for both 

parties to examine their own failings. 

There is no other woman in this 

divorce – the UK is not running away 

with the United States, or not yet at 

least – which makes the call for introspection 

even more relevant. 

The conclusion of the EU Council 

meeting in Brussels meant it was time 

to pack my bags for the VivaTechnology 

Conference in Paris. Nothing like 

“Pollyanna” techies to wake you from 

the post Brexit blues. But no joy. A host 

of Silicon Valley giants were in attendance 

to remind Europe where America 

stood on the debate. Alphabet’s Eric 

Schmidt stated: “We prefer for Europe 

to be one single market, fragmentation 

is bad for entrepreneurs.” Wikipedia’s 

Jimmy Wales lamented the shift toward 

populism globally. 

It was the Publicis chief executive, 

Maurice Levy, however, who lent a 

breath of fresh air to the discussion. 

“The fact that there are populists is not 

the problem, it’s that nobody is 

listening to them,” he said. 

That line stuck with me. How is it possible 

that we live in the most connected, 

digitally aware period in history and 

people aren’t being heard? It’s human 

nature to gravitate to smaller circles. 

Look no further than the halls of 

Brussels and tech conferences for evidence 

of elites building silos. But we 

should expect more from the politicians 

who are elected with a mandate to serve 

the people who pay their way. 

What’s done is done. The UK is going 

to leave the EU. But if leaders sitting 

across the English Channel want to do 

what’s best for the kids in this divorce, 

they should listen to their citizens and 

work toward a smarter, more accountable 

union. Now that the most polarising 

figures in the Leave campaign have 

taken a bow from their parties’ top 

posts, it’s time to work towards reconciliation. 

Take a page out of Gwyneth 

Paltrow’s textbook and “consciously 

uncouple.” 

£ Nancy Hungerford is an anchor and 

correspondent on CNBC. @NancyCNBC 

www.cnbc.com/nancy-hulgrave 

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24 LIFE&STYLE TUESDAY 5 JULY 2016 

CITYAM.COM 

MOTORING 

BY MOTORINGRESEARCH.COM FOR CITY A.M. 

: @city_am 

: @cityamlife 

A genuine Audi Bahn stormer 

Fire up the 

Quattro! Is 

the new Audi 

S5 the spiritual 

successor to 

Gene Hunt’s iconic 

ride? Tim Pitts 

finds out 

How do you improve upon a 

masterpiece? Would Van 

Gogh’s sunflowers look better 

if they were brightened 

up in Photoshop? Perhaps 

Exile on Main Street needs some Auto - 

Tune tweakery to smooth out Mick 

Jagger’s trademark drawl? 

Such was the task facing Audi in replacing 

the A5, the car that designer 

Walter de Silva called his “masterpiece”. 

And as the main reason – probably 

the only reason – for choosing 

the A5 over the cheaper and more 

practical A4 saloon, style is vital. So 

Audi has played it safe, with a design 

that retains the familiar profile of the 

outgoing A5, but adds some visual 

muscle. 

The most obvious change is the 

bulging ‘power domed’ bonnet which, 

in the case of the sporty S5 tested 

here, conceals a 354hp turbocharged 

V6. With Quattro four -wheel drive to 

boost traction, the S5 will blast to 

62mph in 4.7 seconds – just 0.1 seconds 

behind a Porsche 911 Carrera. Yet 

it’s the car’s effortless pulling power 

that really impresses. 

Thanks to two -stage turbo-charging, 

the S5 delivers maximum torque from 

just 1,370rpm – barely above tickover. 

That means you don’t need to work 

the engine hard to make rapid 

progress; overtakes are dispatched 

with a swift flex of the right ankle. 

The low -rev growl builds to a cultured 

V6 howl, punctuated by subtle pops 

from the four meaty tailpipes. 

For all its speed, however, the S5 

falls short when it comes to excitement. 

The downside to all that turbocharged 

torque is you lose the 

intense, high rev drama of a powerful 

naturally- aspirated engine. The eight - 

speed automatic gearbox can be slow 

to react, too. Audi says the twin - 

clutch ’box fitted to the outgoing S5 

can’t handle the new V6’s added 

oomph. 

Fast and failsafe, the S5 made light 

work of a challenging test route 

through the Portuguese mountains. 

It’s enjoyable to drive, but not a car 

you’ll relish taking by the scruff of 

the neck. Like many S and RS- badged 

AUDI S5 QUATTRO 

PRICE: 

0-62MPH: 

TOP SPEED: 

MPG COMBINED: 

CO2 G/KM: 

£TBC 

4.7 SECS 

155MPH 

38.7MPG 

166G/KM 

Audis of the past, its handling errs towards 

safe and neutral, rather than 

extroverted and playful. The steering 

doesn’t help either; it lacks any real 

feedback, and feels artificially heavy 

in Dynamic mode. On the right road, 

an Audi TT is far more fun. 

Where the A5 scores over the TT – 

and most of its rivals – is practicality. 

Its 465 litre boot trumps the rival 

BMW 4 Series (370 litres) and Mercedes 

C class coupe (400 litres). And 

while it remains a strict four seater, 

adults up to 5ft 10in can get comfortable 

in the back. That said, if you regularly 

carry passengers, best wait for 

the five door A5 Sportback – due in 

January 2017. 

Let’s remain inside the car for a moment, 

though, because its interior really 

is something special. Everything 

you see and touch smacks of obsessive 

attention to detail. And Audi’s Virtual 

Cockpit, which swaps traditional dials 

for a customisable 12.3in TFT screen, 

looks fabulous. Shame it’s a £450 option. 

I’m also a big fan of Audi’s MMI 

media system, which gains a touch- 

DESIGN 

PERFORMANCE 

PRACTICALITY 

VALUE 

THE VERDICT 

hhhhh 

hhhhi 

hhhhi 

hhhii 

pad controller and optional in- car internet 

with a flat fee for unlimited 

data use. 

Trace the S5’s lineage and you soon 

arrive at Audi’s much- loved Ur Quattro, 

the square- jawed 1980s icon that 

revolutionised rallying and became a 

TV star in Ashes to Ashes (in the first 

season, Life on Mars, DCI Gene Hunt 

drove a Ford Cortina). Today, the Quattro 

is a bona fide classic, yet I can’t see 

the S5 making petrolheads go weak at 

the knees in decades to come. It’s stylish, 

fast, superbly built and even relatively 

practical. But while the flagship 

A5 is an easy car to respect, it’s a difficult 

one to love. 

Tim Pitt works for motoringresearch.com 

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CITYAM.COM 


FEATURE 

25 

OFFICE POLITICS 

Why it’s time 

to shelve the 

startup culture 

stereotype 

Ed Macnair says the infatuation with hoodies 

and beanbags should be consigned to history 

WHEN I tell someone that 

I run a young tech 

company, I always get 

the same reaction. That 

slight recoil as they get 

their head around the fact that I 

don’t conform to the stereotype (or 

prejudice, by another name). 

First, I’m often wearing a smart 

shirt. The Zuck’s now famous t-shirt 

and hoodie approach has become 

uniform in our industry and, while I 

don’t have anything against that, I 

find it easier to sell things to people 

when I’m looking smart. 

Second, I’m middle aged and running 

a high growth tech company. 

It’s okay. It feels like an admission 

one might make at counselling, but 

I’m really fine with it. 

Third, our fledgling firm (which is 

spreading its wings around the 

world, by the way) is headquartered 

in Basingstoke. Yes that’s right, 50 

miles south west of Silicon 

Roundabout and a place with only a 

mainstream latte selection. Why? It’s 

cheaper and it works. All our HQ 

needs is four walls, enough desks 

and a meeting room. If I can get that 

at a good price in a high-rise off the 

M3, instead of squashing beanbags 

into a Shoreditch loft, great. That 

gives me more money to spend on 

making my product better. 

MIND AND MATTER 

There is a serious point to be made 

here. I believe a lot of company leaders 

can become too embroiled in culture 

at the expense of the growth of 

their business. Everyone wants to be 

Too many 

businesses put a 

funky culture 

before product 

an entrepreneur nowadays, which is 

a good thing because it means 

people are exercising their right to 

be creative and independent. 

However, I believe founding teams, 

particularly at tech startups, sometimes 

don’t question the reasons 

behind filling their carefully distressed 

office with free food and 

table football tables. Retention? 

Maybe, but I felt our staff would 

rather be paid more than flick a tiny 

ball around while eating a street burrito. 

PRODUCT PEDESTAL 

There are, of course, reasons behind 

this culture developing. The bright 

young things that were shaping the 

early days of Silicon Valley liked 

wearing jeans and had to work in a 

KEEPING YOU 

IN ORDER 

Casual PM 

Free 

Another project 

management 

app, Casual PM 

focuses on 

making things as 

visual – and 

simple – as 

possible. The 

software hinges 

on putting 

projects into 

flow charts. This, 

the developers 

argue, allows 

you to see tasks 

and ideas the 

way they look in 

your mind. 

Follow a project 

from start to 

finish on one 

large sheet, with 

colleagues and 

actions inserted 

where relevant. 

garage, because that’s all they could 

afford. They made the best of the situation. 

It was a counter-culture that 

railed against the corporate ideal of 

the time, discarding perceived business 

wisdom to achieve their company 

goals. Their sole focus was on 

making technology that worked. 

This is something that I would urge 

young businesses to do nowadays. In 

a world that puts high growth tech 

companies on a pedestal, I think we 

have become distracted by the gloss. 

This is the world of celebrity startup 

founders: are we guilty of being dazzled 

by the bright lights? 

Under pressure to manufacture a 

company culture, founders sometimes 

expend time and money 

trying to be a startup, rather than 

actually being one. This is entirely 

understandable, as it can help hire 

talent. However, it often detracts 

resource from the one thing that is 

more important than all others: 

product. 

Realise this, and everything else 

will fall into place. Once you have 

belief in your product, it shines 

through your entire business like a 

beacon for talent, investors and, 

most importantly, customers. 

Ironically, this mentality is far 

truer to the startup ethos than any 

of the accompanying sideshow. 

Garages are dark and 

uncomfortable, but they are an 

excellent place to focus on building 

stuff that works, cheaply. Figure this 

one out, and the culture will take 

care of itself. 

£ Ed Macnair is chief executive of 

CensorNet.

26 SPORT TUESDAY 5 JULY 2016 

CITYAM.COM 

FOOTBALL 

Leicester to sign £16.6m Musa as Foxes follow 

Mendy deal with another club record transfer 

FRANK DALLERES 

@frankdalleres 

CHAMPIONS Leicester are poised 

to break their transfer record for 

the second time in days by signing 

Nigeria striker Ahmed Musa from 

CSKA Moscow for £16.6m. 

The 23-year-old, who has scored 

54 times in 168 appearances for 

the Russian side, is expected to 

travel to the Midlands this week to 

complete a long-anticipated move. 

“Everything has been finalised 

and Musa will be in England for 

his medical on Wednesday,” his 

agent Tony Harris told the BBC. 

CSKA coach Leonid Slutski 

confirmed the move, adding: “If 

you look at the way things are 

done over there, you’ll see he is a 

player just made for English 

football.” 

Musa can play as a winger or a 

striker and joined CSKA in 

January 2012 for £4.25m after two 

years in Holland with VVV Venlo, 

where he netted 10 times in 42 

games. He has also scored 11 times 

in 58 matches for Nigeria. 

He came close to joining the 

Foxes in January, while his 

prospective arrival comes after 

Leicester announced the £13m 

signing of French midfielder 

Nampalys Mendy on Sunday. 

The club have made three other 

close-season signings – defender 

Luis Hernandez from Sporting 

Gijon, German goalkeeper Ron- 

Robert Zieler from Hannover, and 

young Spanish striker Raul Uche. 

FOOTBALL 

ANNIVERSARY GAMES 

Bale: Wales dreaming 

of winning Euros now 

USAIN BOLT 

FRIDAY NIGHT LIGHTNING 

ROSS MCLEAN 

@rossmcleanRMAC 

FAIRYTALE-CHASING Wales forward 

Gareth Bale admits his side are 

dreaming of winning Euro 2016 as 

they prepare for their first ever major 

tournament semi-final against 

Portugal in Lyon tomorrow. 

The clash represents Wales’s 

biggest match since a World Cup 

quarter-final showdown with Brazil 

in 1958 -- a remarkable achievement 

considering the principality were 

ranked No117 globally just five years 

ago. 

The Welsh camp, including 

manager Chris Coleman, has 

consistently spoken of the need for a 

no-fear mentality, and former 

Tottenham star Bale has stressed that 

his so-far nerveless side will be devoid 

of stage fright. 

“We came here to do a job, we 

came here to do the business. 

Ultimately we want to win the 

tournament,” said Bale. 

“We think it’s our time, we don’t 

want it to end here. We want to 

continue the journey and keep on 

fighting. We are not going to fear 

anything, we’re not going to freeze.” 

The last-four tussle has pitched 

Bale, the world’s most expensive 

player at £86m, against Ballon d’Or 

winner and Real Madrid team-mate 

Cristiano Ronaldo. 

Despite speculation to the 

contrary, Bale reiterated there is no 

tension between the pair, while he 

has backed Wales’s collectivity to 

stifle the Portugal captain. 

“Of course we get on very well at 

Madrid, we enjoy playing with each 

other,” added Bale. 

“He’s a fantastic player, everybody 

knows what he can do. But we have 

always spoken about what we do, 

what we do ourselves as a team. We 

don’t worry about the opposition.” 

Real Madrid centre-half Pepe, 

meanwhile, is a doubt for the clash 

after missing training yesterday with 

a thigh problem. 

Portugal are already without 

suspended midfielder William 

Carvalho, while Wales will bid to set 

up a final showdown with either 

hosts France or world champions 

Germany without duo Aaron Ramsey 

and Ben Davies, who are also both 

banned for one game. 

THE STADIUM, 

QUEEN ELIZABETH OLYMPIC PARK 

FRIDAY 22 JULY 2016 

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FOOTBALL 

Palace near £31m Benteke move 

months after Pardew diver jibe 



CRYSTAL Palace are closing in on 

the double signing of Liverpool 

striker Christian Benteke – a player 

manager Alan Pardew accused of 

diving last season – and West Ham 

defender James Tomkins for 

combined fees of almost £45m. 

Palace are nearing agreement 

with the Reds over a fee for Benteke, 

after having an initial bid of £25m 

turned down last week. They are 

believed to have returned with an 

improved offer of £27m plus £4.5m 

in performance-related clauses, 

with Liverpool keen to recoup the 

£32.5m they paid Aston Villa last 

summer. 

Benteke is thought keen to revive 

his career at Palace, having scored 

just 10 goals in 42 games for 

Liverpool and falling behind Daniel 

Sturridge and fellow Belgium 

forward Divock Origi in the pecking 

order at Anfield. The 25-year-old 

was far more prolific at Villa, where 

he scored 49 goals in 101 games. 

Palace manager Pardew accused 

Benteke of diving when the teams 

met in London in March and the 

player won and scored a decisive 

late penalty. 

Tomkins, meanwhile, could join 

him at Selhurst Park in a £12m 

transfer from the Hammers. 

The 27-year-old, who can play at 

centre-back or full-back, made just 

four starts after the turn of the 

year. Palace have already signed 

England winger Andros Townsend 

from relegated Newcastle for £13m 

and France goalkeeper Steve 

Mandanda from Marseille for £1.5m 

this summer.

CITYAM.COM TUESDAY 5 JULY 2016 SPORT 27 

CYCLING 

Cavendish takes stage and another milestone 



BRITAIN’S Mark Cavendish struck a 

humble note after going joint-second 

on the all-time list of stage winners at 

the Tour de France. 

Dimension Data rider Cavendish 

pipped German Andre Greipel of 

Lotto-Soudal by 0.006 seconds in a 

photo finish in Angers on stage three 

of the world’s most prestigious race. 

GOLF 

Johnson playing best golf of his career and, 

with Open looming, has chosen ideal time 

GOLF 

COMMENT 

Sam 

Torrance 

US OPEN winner Dustin 

Johnson looks like he’ll be 

the man to beat at the 

Open Championship at 

Royal Troon next week 

after the new world No2 racked up 

back-to-back victories on Sunday. 

Johnson’s one-shot win at the WGC 

Bridgestone Invitational followed his 

maiden Major triumph at Oakmont 

last month and the American is currently 

producing the golf of his life. 

He played beautifully to card two 

consecutive rounds of 66 on Saturday 

and Sunday when few others 

were scoring well, allowing him to 

take advantage of Jason Day’s disastrous 

finish. 

Johnson hits it so far and so 

straight; he is killing every course at 

the moment. You can never dictate 

exactly when you 

strike form but, 

with the Open 

and US PGA 

Championships 

both taking place 

in the next four weeks, 

The Manx sprinter’s second stage 

win already in this year’s event drew 

him level with five-time Tour 

champion Bernard Hinault’s 28 stage 

victories, and behind only the great 

Eddy Merckx’s tally of 34. 

“When I started my career, for me 

to at any point be mentioned in the 

same sentence as Eddy Merckx or 

Bernard Hinault is more than I could 

have dreamed of,” said the 31-yearold. 

“There’s no way I could sit here 

Dustin Johnson followed up his US Open victory by winning the WGC 

Bridgestone Invitational on Sunday in his next event 

he has come into a hot 

streak at the best possible 

time. 

J o i n t 

overnight 

leader Day 

will obviously 

be bitterly disappointed 

to have 

and compare myself in any way to 

those two greats.” 

Fellow Briton and defending 

champion Chris Froome finished in 

the peloton and climbed to fourth in 

the general classification, 14 seconds 

behind Slovakia’s Peter Sagan, who 

retained the yellow jersey. 

Colombian Nairo Quintana and 

Spanish two-time winner Alberto 

Contador, who are among Froome’s 

key rivals as he attempts to win a 

come so close to winning, only to see 

it slip away with a bogey at the 15th 

and a double bogey at 16. 

MCILROY CLOSE AGAIN 

The world No1 can probably count 

himself a little unlucky with the first 

of those and I don’t think the collapse 

will affect him too much in the 

third Tour title, also finished safely 

in the main group. 

Greipel had a full bike length’s 

lead over Cavendish heading into the 

last 50m in the Loire Valley and 

celebrated when he crossed the line, 

unaware that he had been beaten. 

“It was touch and go if I would 

pass him,” Cavendish added. “I didn’t 

get him with the sprint, I got him 

with the lunge to the line, so I was 

pretty fortunate with that.” 

long term; after all, he was still tied 

for third. 

It was a similar story for Rory McIlroy 

at the French Open, where the 

Northern Irishman once again had 

one of those weekends when he does 

just about everything but win. 

McIlroy, who ended third, was held 

off by the extraordinary Thongchai 

Jaidee, 46, who, like that other evergreen 

star of the European Tour, 

Miguel Angel Jimenez, has aged like 

a fine wine. 

LOOK OUT FOR MICKELSON 

Perhaps Rory is saving his best for the 

Open. He very rarely seems to end up 

out of the top 10 whenever he plays 

and his game still looks to be in great 

shape. 

There was a hellish finish for England’s 

Andy Sullivan in France, 

where his chances of a win dissolved 

with a bogey and then a triple bogey 

on the last two holes. 

Sullivan and Jaidee will be among 

those playing this week’s Scottish 

Open at Castle Stuart, where Phil 

Mickelson was the victor last time it 

was held there, in 2013, and then 

landed the Open just days later. 

Mickelson could be one to watch 

again in Scotland. If Jaidee can still 

win at the age of 46 then Phil certainly 

can too. 

Sam Torrance OBE is a multiple Ryder 

Cup-winning golfer and media commentator. 

Follow him on Twitter @torrancesam 

RESULTS 

CRICKET 

SPECSAVERS COUNTY CHAMPIONSHIP - DIVISION 

ONE—Hampshire v Durham (Emirates Riverside): 

Hampshire 472-9dec. (138.1 overs; S M Ervine 93, J H K 

Adams 86, W R Smith 67, G K Berg 56). Durham 79-2 

(24.0 overs). Lancashire v Nottinghamshire (Trent 

Bridge): Lancashire 276 (97.5 overs; T C Smith 70; Imran 

Tahir 4-81). Nottinghamshire 303-5 (83.4 overs; J D Libby 

54, S R Patel 51no). Yorkshire v Middlesex 

(Scarborough): Yorkshire 406 (127.5 overs; G S Ballance 

132, T T Bresnan 63, A Z Lees 63). Middlesex 130-2 (42.2 

overs). Surrey v Warwickshire (Guildford): Surrey 273 

(74.0 overs; A J Finch 110; J S Patel 5-62) and 177 (72.2 

overs; R J Burns 68; J S Patel 5-61). Warwickshire 449 

(118.5 overs; I J L Trott 123, I R Bell 66, K H D Barker 65, T 

R Ambrose 53; M H A Footitt 4-57) and 5-0 (0.5 overs). 

Warwickshire (23pts) beat Surrey (4pts) by 10 wickets. 

DIVISION TWO—Derbyshire v Northamptonshire 

(Chesterfield): No play Monday due to wet outfield 

Kent v Essex (Chelmsford): Kent 207 (62.3 overs; A J 

Blake 89no). Essex 480-6 (129.0 overs; R S Bopara 94, T 

Westley 88, D W Lawrence 82, R N ten Doeschate 77no). 

Leicestershire v Worcestershire (New Road): 

Leicestershire 407 (125.0 overs; N J Dexter 109, E J 

Eckersley 92no, A J Robson 50; B L D’Oliveira 4-80, E 

Barnard 4-62). Worcestershire 193-7 (66.4 overs; T C Fell 

61, D K H Mitchell 52). Glamorgan v Sussex (Hove): 

Glamorgan 335 (112.1 overs; J A Rudolph 87, N J Selman 

52; S G Whittingham 4-58). and 30-1 (13.0 overs) Sussex 

552-5dec. (158.0 overs; L W P Wells 181, B C Brown 159no, 

E C Joyce 106). 

TOUR MATCH—Pakistan v Somerset (Taunton): 

Pakistan 359-8dec. (100.0 overs; Younus Khan 104, Asad 

Shafiq 80, Shan Masood 62). and 140-4 (45.0 overs; Azhar 

Ali 50no) Somerset 128 (34.1 overs). 

FIRST ODI—Afghanistan v Scotland (Edinburgh): 

Afghanistan 283-4. Match abandoned, no result. 

TOUR MATCH—Sri Lanka A v Pakistan A (Grace Road): 

Sri Lanka A 299 (79.5 overs; M L Udawatte 64; Hasan Ali 

4-63). Pakistan A 271-8 (84.0 overs; Mohammad Nawaz 

62no, Babar Azam 61). 

TENNIS 

ALL ENGLAND LAWN TENNIS CHAMPIONSHIPS 

(Wimbledon)—Men’s 4th rnd: (28) S Querrey (USA) bt N 

Mahut (Fra) 6-4 7-6 (7-5) 6-4, (6) M Raonic (Can) bt (11) D 

Goffin (Bel) 4-6 3-6 6-4 6-4 6-4, (3) R Federer (Swi) bt S 

Johnson (USA) 6-2 6-3 7-5, (9) M Cilic (Cro) bt (5) K 

Nishikori (Jpn) 6-1 5-1 ret, J Vesely (Cze) is tied with (10) T 

Berdych (Cze) 6-4 3-6 6-7 (8-10) 7-6 (11-9), (32) L Pouille 

(Fra) bt (19) B Tomic (Aus) 6-4 4-6 3-6 6-4 10-8, (12) J 

Tsonga (Fra) bt (7) R Gasquet (Fra) 4-2 ret, (2) A Murray 

(Gbr) bt (15) N Kyrgios (Aus) 7-5 6-1 6-4. Women’s 4th 

rnd: (1) S Williams (USA) bt (13) S Kuznetsova (Rus) 7-5 

6-0, (21) A Pavlyuchenkova (Rus) bt (27) C Vandeweghe 

(USA) 6-3 6-3, (19) D Cibulkova (Svk) bt (3) A Radwanska 

(Pol) 6-3 5-7 9-7, E Vesnina (Rus) bt E Makarova (Rus) 5-7 

6-1 9-7, (5) S Halep (Rom) bt (9) M Keys (USA) 6-7 (5-7) 

6-4 6-3, (4) A Kerber (Ger) bt M Doi (Jpn) 6-3 6-1, (8) V 

Williams (USA) bt (12) C Suarez Navarro (Spa) 7-6 (7-3) 

6-4, Y Shvedova (Kaz) bt (28) L Safarova (Cze) 6-2 6-4. 

TODAY’S DIARY 

UEFA Champions Lge First Qualifying Round 

Second Leg 

Alashkert FC (0) v Santa Coloma (0) (4pm), B36 Torshavn (0) v 

Valletta (1) (6pm), Tre Penne (1) v The New Saints FC (2) (7.30) 

UEFA Europa League First Qualifying Round - 

Second Leg 

Birkirkara (1) v Siroki Brijeg (1) (4.45), Chikhura Sachkhere (1) 

v Zimbru (0) (5pm), Jeunesse Esch (0) v St Patricks (0) (5.45) ... 

CRICKET 

International Twenty20 Series: England v Sri Lanka 

(The Ageas Bowl, 18.30). Specsavers County 

Championship - Division One—day 3 of 4, 11am: Durham 

v Hampshire (Emirates Riverside), Nottinghamshire v 

Lancashire (Trent Bridge), Yorkshire v Middlesex 

(Scarborough), day 4 of 4, 11am: Surrey v Warwickshire 

(Guildford). Division Two—day 2 of 4, 11am: Derbyshire v 

Northamptonshire (Chesterfield), day 3 of 4, 11am: Essex v 

Kent (Chelmsford), Worcestershire v Leicestershire (New 

Road), day 4 of 4, 11am: Sussex v Glamorgan (Hove). 

Tour Match—day 3 of 3: Somerset v Pakistan (Taunton), 

day 3 of 4: Pakistan A v Sri Lanka A (Grace Road). 

Women’s Twenty20 Match: England v Pakistan (The 

Ageas Bowl, 14). 

CRICKET 

Spot-fixer Amir stars on return 

to first-class cricket in England 

ROSS MCLEAN 


PAKISTAN seamer Mohammad Amir 

claimed three wickets on his return 

to first-class cricket in England, six 

years after the spot-fixing scandal 

which led to a prison sentence. 

Amir served a jail term as well as a 

five-year ban from the sport after 

being found guilty of deliberately 

bowling no-balls during a Test match 

at Lord’s in 2010. Former Pakistan 

skipper Salman Butt and bowler 

Mohammad Asif were also 

implicated. 

The 24-year-old is back in England 

as part of Pakistan’s Test squad for 

the upcoming series and made a 

positive impression by snaring three 

scalps in his side’s warm-up match 

against Somerset at Taunton. 

Left-arm paceman Amir was 

handed the new ball and soon 

dismissed former England batsman 

Marcus Trescothick for eight, while 

he also removed fellow opener Adam 

Hose and all-rounder Peter Trego on 

his way to figures of 3-36. 

Amir’s contribution helped 

Pakistan dismiss Somerset for 128 on 

day two of three. Pakistan ended the 

day with a lead of 371 runs after 

advancing their second innings to 

140-4, having racked up 359-8 

declared in their first. Batsman 

Azhar Ali reached an unbeaten halfcentury 

before the close, while Asad 

Shafiq was 26 not out. 

The performance of Amir, who 

made his international return in a 

Twenty20 clash against New Zealand 

in January, boosted his chances of 

reprising his Test career when the 

Investec series with England gets 

underway at Lord’s on 14 July. 

IN BRIEF 

CITY SEAL DEAL FOR 

FOURTH SIGNING OF 

GUARDIOLA TENURE 

£ FOOTBALL: Manchester 

City have boosted their 

squad with the signing of 

teenage midfielder 

Oleksandr Zinchenko from 

Russian club FC Ufa. The 19- 

year-old former Shakhtar 

Donetsk player represented 

Ukraine at Euro 2016, 

playing in all three group 

matches before his country’s 

elimination. Zinchenko is 

City’s fourth signing under 

new boss Pep Guardiola, 

following the arrivals of Ilkay 

Gundogan, Aaron Mooy and 

Nolito. 

WORLD CUP WINNER 

HURST TIPS HODDLE 

FOR ENGLAND BOSS 

£ FOOTBALL: England 

World Cup winner Sir Geoff 

Hurst has backed Glenn 

Hoddle to succeed Roy 

Hodgson as Three Lions 

boss. Hodgson resigned 

after England’s dismal exit 

from Euro 2016 following 

defeat to Iceland while the 

search is on for a 

replacement. Hurst said: 

“There are some candidates 

who spring to mind who 

have been around, Sam 

Allardyce for example. He is 

enormously experienced but 

if I had to select a candidate I 

think it would be Glenn 

Hoddle.” 

SURREY IN TROUBLE 

AS WARWICKSHIRE 

CLAIM MASSIVE WIN 

£ CRICKET: Surrey suffered 

their fifth defeat of their 

County Championship 

Division One season 

following a 10-wicket 

mauling by new leaders 

Warwickshire at Guildford. 

Surrey collapsed from 107-1 

to 177 all out in their second 

innings, while Warwickshire 

took just five balls to reach 5- 

0 and claim victory. Surrey 

are second bottom. 

£400 IN SPREAD BETS 

ON WIMBLEDON* 

For new accounts, after qualifying bets. 

*See full ts&cs at: spreadex.com/am 

Est. 1999 

Spread bet losses can exceed deposit

28 SPORT TUESDAY 5 JULY 2016 

SPORT 

FOOTBALL 

CITYAM.COM 

A WALES OF A TIME Gareth Bale 

warns Portugal his team now 

have an eye on trophy PAGE 26 

Uefa urged to change Euros format 



GOVERNING body Uefa is being urged 

to consider a radical shake-up of the 

European Championship following 

complaints that the existing system 

leads to more conservative play and a 

lack of goals. 

A Dutch mathematician has devised 

an alternative format for a 24-team 

Euros that promises to be both fairer 

and more entertaining, and Holland’s 

football association, the KNVB, is understood 

to be ready to take the proposal 

to Uefa headquarters. 

“I have confidence that Uefa will 

look at another competition schedule 

because this has not been good – we 

TENNIS 

Murray confident of 

success after Kyrgios 

rout sets up battle 

with old rival Tsonga 

ROSS MCLEAN 

AT WIMBLEDON 


BRITAIN’S Andy Murray is convinced 

that a third grand slam crown could 

be in the offing as long as he continues 

to showcase the form which saw 

him pummel Australian bad boy Nick 

Kyrgios on Centre Court yesterday. 

Murray lived up to his billing as title 

favourite by crushing Kyrgios 7-5, 6-1, 

6-4 to set up a quarter-final clash with 

French 12th seed Jo-Wilfried Tsonga. 

The Scot has now reached the last 

eight at 21 of the last 22 grand slam 

events he has contested. 

“I think if I play the level I’m playing 

at just now, I give myself a chance in 

most matches,” said Murray, who has 

joined Pete Sampras and John McEnroe 

in reaching nine consecutive Wimbledon 

quarter-finals. 

“But the trick is to keep that up, to 

maintain that level for the whole two 

weeks. I’ve done a good job of it so far. 

I do feel like when I’ve needed to in the 

tournament, I have played some good 

tennis, and today was one of my better 

matches, for sure. 

“[But] I’m fully aware of how difficult 

my next opponent is. I know Tsonga is 

one of the best grass court players in 

the world. If he plays well and I’m not 

on my game, I can lose that match.” 

Kyrgios matched Murray in the opening 

set but seemed to lose focus in the 

second from where his challenge 

faded. The 21-year-old’s performance 

was heavily criticised by television 

pundit McEnroe, while 15th seed Kyrgios 

berated himself. 

“It was a good first set. The rest of the 

match was pretty pathetic,” said Kyrgios. 

“As soon as I lost the first set, I 

just lost belief. I think when things get 

tough, I’m just a little bit soft.” 

Defending ladies’ singles champion 

Serena Williams, meanwhile, backtracked 

from her on-court assertion 

that she would sue Wimbledon following 

a weather-delayed straight sets, 7- 

5, 6-0, victory, over Svetlana 

Kuznetsova. 

With the score at 5-5 in the first set, 

Williams was heard to say “If I get 

hurt, I’m suing” during a conversation 

with umpire Marija Cicak after suggesting 

that light drizzle had made 

the Centre Court playing surface slippery 

and dangerous. 

“You guys, don’t even try me like 

that,” said Williams in her post-match 

press conference. “I was in the moment, 

I was on the court, and what I 

say on the court, whether it’s smashing 

my racquet or whatever, it’s in the 

heat of the moment. I have no plans, 

no future of suing Wimbledon. Let’s 

get serious. That’s not what I do, that’s 

not what I am.” 

Williams will face Russia’s Anastasia 

Pavlyuchenkova in her 12th Wimbledon 

quarter-final today -- her third 

match in as many days. 

Seven-time Wimbledon champion 

Roger Federer thrashed America’s 

Steve Johnson 6-2, 6-3, 7-5 to surge into 

the last eight and equal Martina 

Navratilova’s all-time record of grand 

slam match wins. Federer’s dismantling 

of world No29 Johnson was his 

306th victory at a grand slam tournament, 

while the Swiss will now face 

2014 US Open champion Marin Cilic in 

the next round. 

Tsonga, Murray’s last-eight opponent, 

progressed from his all-French 

clash with Richard Gasquet after his 

opponent quit due to a back injury. 

Tsonga was leading 4-2, 40-0 when Gasquet 

opted to call it a day. 

can conclude that – and I think it’s a 

disgrace that they even used the system,” 

Jan Beuving, the alternative format’s 

designer, told City A.M. 

Euro 2016, which features an expanded 

field of 24 teams for the first 

time this year, has seen fewer goals 

per game than any of the preceding 

nine European Championships and 

World Cups – with just 2.15 – despite 

hosts France hitting five in a sevengoal 

rout against Iceland on Sunday. 

The group stage games were even 

worse for entertainment, averaging 

fewer than two goals each and incentivising 

teams to play for draws, since 

three points is enough to progress to 

the round of 16. 

Beuving argues that the current system 

is also unfair, as teams can effectively 

be eliminated by other sides 

that they have not played, as in the 

case of Albania and Turkey, the two 

nations who finished third in their 

groups yet were eliminated. 

His alternative format – dubbed Plan 

Beuving by Dutch media – divides 

teams into eight groups of three, 

rather than the current six groups of 

four. After the three teams in each 

group have played each other, the top 

nation progresses straight to the last 

16, while the second-placed teams 

play off against third-placed sides 

from other groups to determine the 

other eight teams. 

Where Plan Beuving departs more 

radically from the current system is 

Andy Murray has reached the quarter-finals of Wimbledon without dropping a set 

that it requires any draws in the 

group stage to be settled by an immediate 

penalty shoot-out. This is because 

results determine the order of 

the group fixtures, in order to ensure 

the maximum probability that there 

is something at stake in each game. 

“The system is more fair, so it’s better. 

I think it’s more attractive too,” 

Beuving added. 

“In the current system you have 36 

group stage matches and in my system 

you have 24 group matches, with 

eight play-offs, which are knockout already 

and naturally more attractive to 

watch. 

“The problem with the current system 

is that you can be eliminated by 

a team you have not faced in the tournament. 

So Albania and Turkey have 

been eliminated by four No3s from 

other groups – they haven’t faced 

these countries. So that’s unfair, you 

shouldn’t be eliminated by a team you 

haven’t faced.” 

Beuving, who has a degree and a 

masters in maths, is hopeful that his 

proposal will be considered by Uefa, 

having had positive feedback from 

KNVB president Michael van Praag. 

He added: “Michael van Praag was 

on the same programme as I attended 

on television, and they discussed Plan 

Beuving and he said: ‘We’ll send it to 

Uefa and have a look what they think 

of it’. That’s encouraging. I’m optimistic 

that the system will be seriously 

looked at in Geneva.” 

FOOTBALL 

Real ordered to 

repay £20m in 

state aid by EC 



REAL Madrid and Barcelona, the 

world’s two richest clubs, have been 

ordered to pay back millions of euros 

after a European Commission 

investigation found them guilty of 

receiving illegal state aid. 

Real must pay back €18.4m 

(£15.4m) relating to a land deal with 

local authorities, who were found to 

have overpaid, as well up to €5m 

(£4.2m) in extra tax, having been one 

of four Spanish clubs to have 

benefited from a preferential lower 

rate that the EC was not justified. 

Barcelona must also pay back up 

to €5m (£4.2m) in tax as a result of 

being on the lower rate; so must 

Athletic Bilbao and Osasuna. 

Valencia were hit with the biggest 

bill of €20.4m (£17.1m) after they and 

neighbouring clubs Hercules and 

Elche, who must pay €6.1m (£5.1m) 

and €3.7m (£3.1m), received financial 

guarantees from the state-owned 

Valencia Institute of Finance, giving 

them an unfair advantage on other 

sides seeking credit. 

“Using taxpayers’ money to 

finance professional football clubs 

can create unfair competition,” said 

Commissioner Margrethe Vestager. 

“Professional football is a 

commercial activity with significant 

money involved and public money 

must comply with fair competition 

rules. The subsidies we investigated 

in these cases did not.” 

Real have set the last five world 

transfer records, most recently when 

paying £85m to Tottenham for Wales 

star Gareth Bale in 2013, and had 

revenues of €577.0m for 2014-15, 

according to Deloitte. Barcelona had 

income of €560.8m last year. 

Barcelona’s 14-month embargo on 

signing players – imposed for 

breaking rules on the recruitment of 

young players from overseas – 

elapsed in January. Real Madrid were 

hit with similar charges at the start 

of the year. Their punishment has 

been suspended pending an appeal.

THREE EX-BARCLAYS BANKERS CONVICTED OVER LIBOR SCANDAL

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